The premium device launched in August was supposed to compete with Apple Incs latestiPhone for supremacy in the smartphone market. Well received by critics, its first problem was ashortage as pre-orders overwhelmed supply. But within weeks of the launch images of charred Note7s began appearing on social media, inthe first sign that something was seriously amiss with the gadget. Samsung has since recalled 2.5 million Note7s due to faulty batteries, and the latest reports offires in replacement devices is raising fresh doubts about the firms quality control procedures. Edward Snyder, managing director of Charter Equity Research, said it was important to get theNote7 off the market. “This has probably killed the Note7 brand name, who knows if theyll even be allowed to re-release it,” Snyder said.”By the time they fix the problem they have to go through recertification and requalification and bythe time that happens theyre going up against the (Galaxy) S8 launch.” Samsung has temporarily halted the production of its fire-prone Galaxy Note 7 smartphones asfire cases were reported even with replacement phones, Yonhap news agency reported citing an official of Samsungs subcontractor. The unidentified official was quoted as saying the production of replacement phones will besuspended in Vietnamese factories that have responsibility for the production of Note 7 phonesto be shipped globally. The official said he heard that the decision was made in consideration of the safety of globalconsumers in the United States as well as in China and South Korea after consulting withregulatory authorities of the three countries. The suspension came as several cases of catching fire were reported even with replacementdevices. According to media reports, eight cases were reported, including five in the United States, one inSouth Korea, one in the Chinese mainland and one in Taiwan. Samsung Shares Nosedive after it Halts Note 7 sale Samsung Electronicsshares plunged over 6 percent after the tech giant said that it has decided to temporarily halt the global sales and exchange of its Galaxy Note 7 smartphones while it investigates reports of fires in the devices, as the tech giant scrambled to contain a deepening recall crisis. The smartphone conglomerates shares fell 6.25 percent as of 11:00 am, the largest intraday drop in a month. The company said on its website that the decision was made after consulting with relevant authorities. Although a precision investigation is underway over recently reported cases of replacement Note 7 phones catching fire, Samsung said it decided on the temporary suspension for the sake of consumer safety. “Consumers with either an original Galaxy Note7 or replacement Galaxy Note7 device should power down and stop using the device,” the company said in statement. It said the company is closely cooperating with partners and mobile carriers for consumers using Note 7 phones, promising to notify the consumers of follow-up measures, such as exchange for other devices, as early as possible. Top US and Australian carriers suspended sales or exchanges of the flagship Note7s, while major airlines reiterated bans on passengers using the phones, after smoke from a replacement device forced the evacuation of a passenger plane in the United States last week. Samsungs decision to pull Note7s off the shelves for the second time in two months underscores the South Korean firms struggles to fix the over-heating issue. The premium device launched in August was supposed to compete with Apple Incs latest iPhone for supremacy in the smartphone market. Well received by critics, its first problem was a shortage as pre-orders overwhelmed supply. But within weeks of the launch images of charred Note7s began appearing on social media, in the first sign that something was seriously amiss with the gadget. Samsung has since recalled 2.5 million Note7s due to faulty batteries, and the latest reports of fires in replacement devices is raising fresh doubts about the firms quality control procedures. Edward Snyder, managing director of Charter Equity Research, said it was important to get the Note7 off the market. “This has probably killed the Note7 brand name, who knows if theyll even be allowed to re-release it,” Snyder said. “By the time they fix the problem they have to go through recertification and requalification and by the time that happens theyre going up against the (Galaxy) S8 launch.” Samsung Electronics Co has temporarily halted the production of its fire-prone Galaxy Note 7 smartphones as fire cases were reported even with replacement phones, Yonhap news agency reported citing an official of Samsungs subcontractor. The unidentified official was quoted as saying the production of replacement phones will be suspended in Vietnamese factories that have responsibility for the production of Note 7 phones to be shipped globally. |