Samsung To Halt Production Of Galaxy Note 7 Devices


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Samsung Electronics Co Ltd has reportedly suspended the production of its flagship Galaxy Note 7 smartphones after reports of fire incidents added to the tech giant’s worst ever recall crisis.

According to Reuters, a source made this notion known to them – they report that top U.S. and Australian carriers also suspended sales or exchanges of Note 7s, 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.

“If the Note 7 is allowed to continue it could lead to the single greatest act of brand self-destruction in the history of modern technology,” said Eric Schiffer, brand strategy expert and chairman of Reputation Management Consultants.

“Samsung needs to take a giant write-down and cast the Note 7 to the engineering hall of shame next to the Ford Pinto.”

In a regulatory filing, Samsung said it was “adjusting” shipments of Note 7s to allow for inspections and stronger quality control due to some devices catching fire.

It did not comment on the production halt or the cause of the fires, while the source – who declined to be identified because they were not authorized to speak to the media – did not explain whether specific problems had been identified or when production was halted.

Samsung told Reuters it was investigating reports of “heat damage issues” and would take immediate action to fix any problems in line with measures approved by the U.S. Consumer Product Safety Commission.

On Sept. 2, Samsung announced a global recall of 2.5 million Note 7s due to faulty batteries which caused some of the phones to catch fire.


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