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Samsung suspends Note 7 production | News On The Break

Samsung suspends Note 7 production

South Korean tech giant Samsung has permanently ceased production of its high-end Galaxy Note 7 smartphones after reports of devices it had deemed safe catching fire.

"We recently readjusted the production volume for thorough investigation and quality control, but putting consumer safety as top priority, we have reached a final decision to halt production of Galaxy Note 7s," the company said.

"For the benefit of consumers' safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production."

In September, Samsung recalled around 2.5 million phones after complaints of exploding batteries.
It later insisted that all replaced devices were safe.

However, that was followed by reports that those phones were catching fire too.

Authorities in the US and South Korea are investigating why even the replacement Note 7 phones that Samsung equipped with a safer battery reportedly caught fire.

An official at the South Korean safety agency said the replacement phones might have a defect that was different from the problem with the original Galaxy Note 7s.

Samsung could suffer "a considerable loss of consumer faith," said Greg Roh at HMC Investment Securities.
"If it's once, it could be taken as a mistake. But for Samsung, the same thing happened twice with the same model," he said.

"The reason consumers prefer brands like Samsung and Apple is because of product reliability. So in this case, brand damage is inevitable and it will be costly for Samsung to turn that around again."
At least five fires were reported in replacement devices in the US.

Samsung said it had sold about 45,000 Note 7s through pre-orders in Europe.
The handset was never released for sale in the UK.