After several reports of SAMSUNG’SFlagship device, the “Samsung –Galaxy note 7”, blowing up, The company had looked to calm things down by offering replacements – but over five of the replacements also kept blowing up. Due to this Samsung will permanently stop selling its new flagship phone amid fears that it could blow up, it has said in a report.
It had previously said that it was pausing operations on the new handset to try and find the cause of the mysterious explosions. It will now stop selling them entirely, it said.
Samsung insisted at the time that it was making production adjustments to improve inspections and quality control. But it has finally relented and said in a regulatory filing that no more of the phones would be made or sold.
“Taking our customer’s safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7,” it said in a filing in South Korea. Local media reported that Samsung’s factories have already been instructed to stop making the device.
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The problems initially appeared to have a limited effect on Samsung’s share price, with investors appearing to believe that the problem could be fixed. But when the company said that it was pausing operations and that the cause of the explosion was a mystery, its value began to plummet and it lost as much as $19bn (£15.4bn) in value.
It is still unclear what will happen to phones that have already been bought, since millions of them have already been sold. Owners have been advised to contact the provider or operator they bought the phone from, and experts suggest that those companies should offer loan devices until they are replaced.
Research has shown that Samsung may lose a large percentage of its users due to this mishap to Apple. Their share price has also plummeted by as much as $19bn.
