Samsung has today announced that its permanently discontinuing the production of its now infamous flagship smartphone, Galaxy Note 7.
After pulling the plug on worldwide sales of Note 7 and issuing a worldwide recall and then attempting to deal with the crises has come attached with the defective Galaxy Note 7 with replacement units today found to have the same bursting problem as original, Samsung has officially killed the device for good, citing customer safety as the number one overriding reason.
According to a couple of reports from Bloomberg and Wall Street Journal, it suggests the Samsung company has made the killing permanently within less than two months after Galaxy Note 7 launch. The South Korean firm had previously made the announcement that it was temporarily halting production of the Note 7 range while investigating the cause of the problem which was affecting both original launch units and ‘safe’ replacement units. Final decision of this permanent termination of production supersedes that announcement.
This move of termination of Galaxy Note 7 production comes just after Samsung urged its users to power off the hardware, as the company has already recalled 2.5 million handsets over faulty battery issue earlier this month. AT&T, T-Mobile and Verizon have also stopped selling the Galaxy Note 7 units. Today, with the decision of killing Galaxy Note 7 may cost Samsung $17 billion bucks. Since announcing the global recall of the Note 7, Samsung shed over 28 trillion won (almost &26 billion) off its market capital, as per reports.
Elliot Kaye, Chairman of the United States Consumer Product Safety Commission, commended the decision following Samsung’s announcement of globally ending the sales, saying “it is the right move for Samsung to suspend the sale and exchange of all Galaxy Note 7s.”
Sales of Galaxy Note 7 may have ended, so has the production though. Many Note 7 units are still out in the wild in consumers hands which not puts their life into risk, but also of the people and property around them. Many carriers and even retail partners, are also advising customers of doing the same as soon as possible like what it says “urging the Galaxy Note 7 owners to power down their device right away to best alleviate any fears of the device spontaneously combusting and exchange it with any other phone.”
Following this news, Samsung’s shares are already down 7%. The company is expected to take a whopping $17 billion hit due its disastrous Note 7 launch. As for alternatives to Galaxy Note 7, there are no other base at this far moment and of course there are Apple’s iPhone 7 and iPhone 7 Plus range, HTC’s 10, Google’s next-gen Pixel and Pixel XL, among others, but not on top of Galaxy Note 7. And I mean that!
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