Sam­sung halts pro­duc­tion and global sales of Note 7

The Myanmar Times - - International Business -

SAM­SUNG sus­pended yes­ter­day all pro­duc­tion of its Galaxy Note 7 smart­phone, halted sales world­wide and told cus­tomers to stop us­ing the de­vice, fol­low­ing re­ports that re­place­ments for com­bustible models were also catch­ing fire.

The South Korean com­pany’s lat­est ef­forts to con­tain a snow­balling re­call cri­sis that threat­ens to de­rail the pow­er­house global brand came as the fed­eral US con­sumer reg­u­la­tor is­sued an alarm­ing warn­ing of the pos­si­ble dan­gers the Note 7 posed to its own­ers, their fam­i­lies and homes.

The mea­sures an­nounced by the world’s largest smart­phone maker came a lit­tle over a month after it re­called 2.5 mil­lion Note 7s in 10 markets fol­low­ing com­plaints that its lithium-ion bat­tery ex­ploded while charg­ing.

The un­prece­dented move has turned into a PR disaster for the com­pany, which prides it­self on in­no­va­tion and quality, and the sit­u­a­tion only wors­ened when re­ports emerged a week ago of re­place­ment phones also catch­ing fire.

“If it’s once, it could be taken as a mis­take. But for Sam­sung, the same thing hap­pened twice with the same model so there’s go­ing to be a con­sid­er­able loss of con­sumer faith,” said Greg Roh, a con­sul­tant at HMC In­vest­ment Se­cu­ri­ties.

“The rea­son con­sumers pre­fer brands like Sam­sung and Ap­ple is be­cause of prod­uct re­li­a­bil­ity ... so in this case brand dam­age is in­evitable and it will be costly for Sam­sung to turn that around again,” Mr Roh said.

A day after it said it was “ad­just­ing” the man­u­fac­tur­ing vol­ume of Note 7s, Sam­sung said it was “putting con­sumer safety as the top pri­or­ity” and halt­ing pro­duc­tion com­pletely.

Ear­lier in the day it had di­rected all its car­rier and re­tail part­ners world­wide to stop sales and ex­changes of the Galaxy Note 7 pend­ing a thor­ough in­ves­ti­ga­tion. –

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