Samsung Galaxy Note 7 handset has been permanently discontinued within two months of launch, and it could reportedly cost $17 billion loss for the smartphone giant. According to sources, the decision to suspend production is touted as a major setback for the company. Moreover, it could not only cost Samsung huge losses but also tarnish its image. When Samsung launches its next flagship, customers will be hesitant to invest their hard earned money.
In a statement, Samsung disclosed that they had aborted the sales and production of the Galaxy Note 7 by taking into account customer’s safety. The press note added that company gives the highest priority to the safety of customers.
The announcement from Samsung is a follow up to the recent development after a global recall of all Note 7 handsets. This includes the replacement handsets tagged as safe. Samsung also asked all carrier and retail partners worldwide to immediately stop sales and exchanges of the Galaxy Note 7.
Samsung Galaxy Note 7 safe handsets explode
Samsung has pulled the plug after a series of explosions due to defective batteries. After the first round of incidents of explosions and burns, the company recalled the Galaxy Note 7 handsets. Samsung shipped new handsets with a black square symbol and green indicator to customers free of cost. However, these safe handsets also exploded in the US creating panic and tension among customers.
Commenting on the decision, Elliot Kaye, Chairman, US Consumer Product Safety Commission lauded the decision taken by the company. He said it is the right move for Samsung to suspend the sale and exchange of all Galaxy Note 7s.
Released in August, the Samsung Galaxy Note 7 got rave reviews from the company. However, the first reports of explosion surfaced when the battery inside the phone caught fire suddenly. Even a whole jeep got burned as a result of the fire. Moreover, a kid who was holding Note 7 watching a video was injured due to the explosion.
Samsung Galaxy Note 7 battery charging restricted
After these incidents, Samsung issued an OTA update, which restricts the phone not to charge above 60 percent. This has angered customers since they are not getting the full potential of the handset. Even Bollywood actor Amitabh Bachchan took to Twitter and expressed his anger indirectly over the battery charging issue.
Recently, Samsung Galaxy Note 7 with black square symbol dubbed to be safe, exploded inside a US flight even when the customer is not using the phone. There are reports that a Note 7 exploded all of a sudden during night.
What should you do if you have Samsung Galaxy Note 7?
If you are using Samsung Galaxy Note 7, you should switch it off immediately and return them to the retailer from where you purchased the handset. Meanwhile, US-based mobile carriers have issued statements that the Galaxy Note 7 can be exchanged for smartphones from either Samsung or other manufacturers.
According to industry analysts, even though Samsung is not entirely out of the mobile business segment, the recovery will be slow. The shares of the company fell to 8 percent after the announcement of the suspension of Galaxy Note 7.
With Samsung aborting the production of Galaxy Note 7, the engineers will now have to sit and dissect what when wrong. This will help them to manufacture safe Galaxy Note 8 handset in 2017.