Shares of Samsung Electronics fell sharply on Tuesday after the company confirmed reports that it had halted production of its flagship Galaxy Note7 smartphone, just launched this summer.
Samsung Down, Galaxy Note7 Out
The move came after several replacement phones reportedly smoldered or caught fire.
Shares fell 8 percent in the Korean market.
Samsung had been working with the U.S. Consumer Product Safety Commission on a voluntary recall and replacement program, spurred by reports that dozens of the new devices had burst into flames due to faulty lithium-ion batteries.
Regulators also had banned them from commercial aircraft.
The CPSC will continue its lively exploration in to the accounts of cell phones getting rid of and “overheating in multiple areas,” said Chairman Elliot Kaye, who praised Samsung, along with merchants and service providers, for suspending Word7 substitutes and sales.
“No one must have to get worried that their mobile phone will endanger them, their family or their house,” Kaye said. “Because of the ongoing protection concerns associated with Galaxy Word7 phones, it’s the right move for Samsung to suspend the deal and exchange of most Galaxy Records7s.”
The National Aviation Supervision has urged travellers never to use, fee or stow the Galaxy Take note7 mobile phones in checked out baggage.
The FAA described last month’s security alert, which records that dangerous or faulty lithium-ion batteries can’t be transferred via air cargo and hold heavy limitations for traveler or team transit.
Among the highest-profile incidents affecting a Galaxy Word7 phone took place last week, following a passenger who experienced boarded a Southwest Airlines planes scheduled to take a flight from Louisville to Baltimore reported smoke cigars emitting from his Galaxy Take note of7 alternative device, relating to Lori Crabtree, spokesperson for Southwest.
All passengers and crew exited the plane through the key cabin door safely, the E-Commerce was informed by her Times.
The Samsung brand, which includes appreciated a longstanding reputation for quality, likely will need a conquering, as the recall and succeeding halt of sales expose something critically amiss in the creation and quality control process at the business.
“This is a tragedy that retains on growing for Samsung and their brand,” witnessed cellular analyst Jeff Kagan.
“This problem shouldn’t have occurred. The devices must have been analyzed completely, which problem must have been found before it to enter the market,” he advised the E-Commerce Times.
While Samsung has other cell phones and other devices in its products, the destruction has spilled to some of these other devices as well, Kagan observed. Some consumers have lost rely upon the entire brand.