Samsung Halts Production of Galaxy Note 7
After a vast number of complaints and reports from all parts of the world regarding the product's defects, Samsung finally announces the decision to shut down the production of its controversial gadget Galaxy Note 7.
The New York Times first reported the news, citing "a person familiar with the matter."
According to Gizmodo, in a statement filed with the company's core zone at Korea's stock exchange, Samsung authorities said it had made a "final decision" to stop production.
That means the company will no longer produce or market Galaxy Note 7, said the person, who spoke on the condition of anonymity because the company did not offer any further information about the decision.
According to an official source, Samsung has received at least 92 reports of Note 7 batteries overheating in the U.S., 26 reports on explosions and burn, and 55 reports of property damage.
Many customers even suffered injury and wounds due to these incidents. Most of the reports hint to the same problem of overheated battery while charging or while being used on enabling high-level apps.
However, the company assured its customers that it was "confident" of solving the Note 7 battery problem following a worldwide recall in September. But it didn't work out and failed at the primitive attempt.
This happened as the same battery issue was seen in the replacement models as well. Some sources also hint that Samsung is planning to announce and transact refunds to all the customers who have already bought this smartphone.
According to a report by Mail Online, the decision could cost about $19billion loss for the company. Experts speculated that the discontinuation of the device could cost nearly $1billion in lost sales and Samsung could have to drain out an estimated $2.2billion if the 2.5 million pieces of this device produced are refunded at an average cost of $850. This can prove to be the highest drawback of this company in the last few years.
The announcement resulted into a huge loss for Samsung Electronics by making its shares fell by 8 percent in Seoul on Tuesday, which literally wiped out about $17 billion of market value of the company.
Gradually, Apple's share also expanded to a 1.9 percent of high-rise following the crisis faced Samsung on the same day. Although many potential sources indicate that Samsung has taken the decision for the product to "discontinue permanently", the actual reason behind this battery issue is still under curtains.
