After numerous reports of Galaxy Note 7 smartphones catching fire and exploding, even after Samsung’s massive recall, the tech giant has decided to pull the plug on production of the device. After a months-long controversy over its defective, dangerous batteries the phone is undergoing a complete recall, including the supposedly safe replacement phones.
“Taking our customer’s safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7,” said Samsung in a statement. “Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note 7.”
Samsung on Monday advised all customers to stop using the phones, sending its shares tumbling by 8% in Seoul. The selloff came after Samsung told Galaxy Note 7 users world-wide on Tuesday to immediately switch off their original or replacement Note 7s.
What should Galaxy Note 7 owners do? From a safety standpoint, users should refrain from charging the device, power it down, and definitely not travel with it on a flight. Consumers should resist from trying to charge the device since several reported cases claim the device emitted smoke while charging. Charging should not even be an idea to consider, as Samsung and the CPSC both recommend powering down the smartphone altogether and return them to wherever they were originally purchased.
Giving up on the Note 7 will be costly. Analysts at Nomura estimate the total hit could reach $9.5 billion in lost sales and wipe out $5.1 billion of profit. But Samsung, which has a market value of about $194 billion and annual sales of $179 billion, should be big and profitable enough to weather the loss of one model.
Although Samsung and the rest of the mobile industry will be dissecting what exactly went wrong here for years to come, early reports suggest that the fault might have been caused by the Korean company’s desire to beat this year’s “dull” iPhone.