View this article online: https://www.insurancejournal.com/news/international/2016/10/11/428962.htm
Samsung Electronics Co. is ending production of its problematic Galaxy Note 7 smartphones, taking the drastic step of killing off a smartphone that became a major headache for the South Korean electronics maker.
After halting sales of the new versions of the large-screen smartphone that failed to fix exploding batteries, Samsung finally pulled the plug on a key product that was supposed to compete with Apple Inc.’s iPhones and other high-end smartphones during the U.S. holiday shopping season.
Production will stop, Samsung said in a statement Tuesday.
Pressure had been mounting for Suwon-based Samsung to act decisively, after the original and replacement Note 7 were taken off shelves while the company investigated the cause of the latest problems. The U.S. Consumer Product Safety Commission also warned users not to use the Note 7 due to concerns over more incidents of overheating. The Korea Agency for Technology and Standards also asked Samsung to stop selling or exchanging the Note 7 after the regulator confirmed possible defects in the new phones.
Samsung shares fell 8 percent Tuesday, wiping out about $17 billion of market value. The company originally introduced the Note 7 in August and then recalled the initial shipment of 2.5 million phones after a spate of battery fires. It is now investigating incidents with replacement devices that it had thought were safe.
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