Samsung halts production of the Galaxy Note 7 – CNET
Theis a goner.
Samsung reportedly has halted production of its large screen phone following news of overheating issues in its replacement devices, according to South Korean publications such as Yonhap News Agency. An anonymous Samsung official told Yonhap that the halt was done in cooperation with safety regulators from South Korea, China and the United States.
Samsung didn’t immediately respond to CNET’s request for comment.
The Note 7, which hit the market in mid-August, was considered one of the best Android phones ever made and was seen as Samsung’s chance to solidify its lead in the mobile market. But battery problems caused the phone to overheat and sometimes catch fire. Samsungof the popular device last month. The company has said more than have been returned, and about 90 percent of people have chosen to trade their old Note 7 in for a new model.
But over the past week, there have been a handful of reports of overheating in replacement devices. One caused the evacuation of a Southwest Airlines flight; another hurt a teenage girl. Carrier partners like AT&T and T-Mobile have stopped selling the Note 7 and are letting customers exchange a replacement Note 7 for a different phone.
Samsung hasn’t officially confirmed plans to stop production of the Note 7 but said earlier Sunday that it was “working diligently with authorities and third party experts” to investigate the problem with the replacement Notes and that “if we determine a product safety issue exists, Samsung will take immediate steps approved by the [Consumer Product Safety Commission] to resolve the situation.”
What’s likely up for Samsung next is a rare, second recall of the Note 7.
“If the replacement phones are truly having battery issues, Samsung should immediately discontinue the Note 7,” Moor Insights & Strategy analyst Patrick Moorhead said. He added that “they can take the holiday and focusing [on] selling … theline and on redesigning the [expected] Note 8″ for a launch next year.
The Note 7 issues come at the worst possible time for Samsung. Rival Apple in September released its newest Pixel. Having not one, but two major recalls of a single device deals a blow to Samsung’s finances. It also hurts the company’s credibility and makes its rivals’ devices look even more attractive., and Google just introduced its first premium smartphone, the
“The developments have not really helped Samsung,” Creative Strategies analyst Carolina Milanesi said. “First the lingering around the official recall then the incidents with replacement devices that were supposed to have the battery issue rectified will leave a bitter taste in consumers’ mouth for longer than first anticipated.”
Updated at 11:15 p.m. PT and 11:35 p.m. PTwith additional details.