Samsung halts production and global sales of Note 7
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. –