Samsung has suspended production of its Galaxy Note 7 cell phones taking after reports of fires in substitution gadgets, South Korean media said on October 10, a further mishap for the tech giant attempting to manage its worst ever phone recall crisis.
Samsung’s decision to temporarily end Note 7 generation was done in collaboration with authorities in China and the United States, as two US carriers have quit trading or offering new Note 7 phones, Yonhap News Agency cited an unnamed source at a Samsung partner firm as saying.
Samsung did not immediately comment on the Yonhap report.
Issues with replacements for the Note 7 model would make another and possibly expensive part to a worldwide outrage which has hurt the reputation of the world’s greatest cell phone producer. It additionally could include new risks for shoppers.
AT&T Inc, the No.2 US wireless carrier, said on Sunday it will quit exchanging new Note 7 cell phones because of reports of fires from substitution devices that Samsung has said used safe batteries.
No. wireless carrier T-Mobile US Inc said it was briefly stopping offers of new Note 7s and additionally exchanges while Samsung examined “various reports of issues” with its flagship device.
Samsung declared on Sept. 2 a worldwide review of 2.5 million Note 7s in 10 markets including the United States because of defective batteries causing some of the phones to catch fire.
A Southwest Airline flight was evacuated earlier this week after a substitution model Note 7 cell phone started smoking inside the plane, according to the family who owns the phone.
“If we determine a product safety issue exists, Samsung will take immediate steps approved by the CPSC (US Consumer Product Safety Commission) to resolve the situation,” Samsung told Reuters in a statement.
“I thought the Note 7 matter was coming to an end, but it’s becoming an issue again,” Alpha Asset Management fund manager CJ Heo said.
Samsung should be able to recover from the short-term reputational damage of the recalls, but fourth-quarter sales of the Note 7 would be hurt, he added.