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Samsung halts production of the Galaxy Note 7

Following reports that replacement models of the Note 7 also suffered from the battery flaws that led to the initial recall, Samsung reportedly has stopped production of its latest phone.

October 9, 2016

7:12 PM PDT

The Galaxy Note 7 is a goner.

 

Samsung reportedly has halted production of its large screen phone following news of overheating issues in its replacement devices, according to South Korean publications such as Yonhap News Agency. An anonymous Samsung official told Yonhap that the halt was done in cooperation with safety regulators from South Korea, China and the United States.

 

Samsung didn't immediately respond to CNET's request for comment.

 

The Note 7, which hit the market in mid-August, was considered one of the best Android phones ever made and was seen as Samsung's chance to solidify its lead in the mobile market. But battery problems caused the phone to overheat and sometimes catch fire. Samsung issued a global recall of the popular device last month. The company has said more than half of its defective phablets have been returned, and about 90 percent of people have chosen to trade their old Note 7 in for a new model.

 

"If the replacement phones are truly having battery issues, Samsung should immediately discontinue the Note 7," Moor Insights & Strategy analyst Patrick Moorhead said. He added that "they can take the holiday and focusing [on] selling ... the Galaxy S7 line and on redesigning the [expected] Note 8" for a launch next year.

 

 

The Note 7 issues come at the worst possible time for Samsung. Rival Apple in September released its newest iPhones, and Google just introduced its first premium smartphone, the Pixel. Having not one, but two major recalls of a single device deals a blow to Samsung's finances. It also hurts the company's credibility and makes its rivals' devices look even more attractive.

 

"The developments have not really helped Samsung," Creative Strategies analyst Carolina Milanesi said. "First the lingering around the official recall then the incidents with replacement devices that were supposed to have the battery issue rectified will leave a bitter taste in consumers' mouth for longer than first anticipated."

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