It is official, Samsung killed Note 7 production. I would assume it is time for Apple fans to rejoice. Everyone has been following the exploding phone fiasco by Samsung for a long while. The faulty batteries in the phone keep on exploding. Samsung issued a recall but then the replacement phones were faulty as well. It seems that the company is suffering from major bad luck.
Note 7 production halted permanently
A representative of the company, Samsung has told WSJ that they are killing off the Note 7 production permanently. Samsung’s move to kill Note 7 comes of no surprise. There have been reports of at least three replacement phones bursting into flames . Samsung states to discontinue Note 7 production over safety concerns of consumers. The company has not given out explanations about what exactly went wrong that led to the halt of production but stated about ending production.
Read about why do Note 7 phone battery explode
Samsung launched Note 7 ahead of Apple’s iphone 7 to gain competitive advantage. The initial recall launched was on 2.5 million Note 7 phones in September. The phones battery overheated leading to fire. Many airports had banned the carrying of Samsung since, they were prone to catching fire even when turned off. The company is also facing lawsuits for physical and property damages caused to consumers.
The brand image has been severely tarnished in this entire fiasco. Many financial analysts predict that this can cost the company up to $17 billion. This is just an estimation of the loss the company will suffer because of killing Note 7. Consumers are encouraged to get a full refund or switch to another Samsung phone along with a $25 gift card. The company’s stock price dropped to 8% today as investors pulled out causing a damage of $19 billion on the company value.
Image via CandyTech