Samsung Electronics is ending production of its problematic Galaxy Note7 smartphones, taking the drastic step of killing off a smartphone that became a major headache for the South Korean electronics maker.
After halting sales of the new versions of the large-screen smartphone that failed to fix exploding batteries, Samsung finally pulled the plug on a key product that was supposed to compete with Apple’s iPhones and other high-end smartphones during the holiday shopping season.
Production will stop, Samsung said in a statement Tuesday.
Pressure had been mounting for Suwon-based Samsung to act decisively, after the original and replacement Note7 were taken off shelves while the company investigated the cause of the latest problems.
The US Consumer Product Safety Commission also warned users not to use the Note7 due to concerns over more incidents of overheating. The Korea Agency for Technology and Standards also asked Samsung to stop selling or exchanging the Note7 after the regulator confirmed possible defects in the new phones.
Samsung shares fell 8% on Tuesday, wiping out about US$17bn of market value.
The company originally introduced the Note7 in August and then recalled the initial shipment of 2,5m phones after a spate of battery fires. It is now investigating incidents with replacement devices that it had thought were safe. — (c) 2016 Bloomberg LP
