Samsung Halts Galaxy Note 7 Production For Good
Samsung just can’t seem to get ahead of their battery problem in the Galaxy Note7’s. For that reason the company has permanently ended production and sales of the smartphones.
Reports have surfaced that the device is still catching fire, the originals and the replacements. On Tuesday the company announced the end of this humiliating chapter in what could be close to the end of the book for the electronic giant.
“Samsung is asking all carrier and retail partners here and around the globe to stop sales and exchanges of the Galaxy Note7.”
The company posted on their website a statement regarding the threat Galaxy Note7’s pose to users.
“Since the affected devices can overheat and pose a safety risk, we are asking consumers with an original Galaxy Note7 or a replacement Galaxy Note7 to power it down and contact the carrier or retail outlet where you purchased your Galaxy Note7.”
$18 Billion Wiped Off Shares
After the company asked its global partners to stop sales and exchanges of the smartphone, shares of the South Korea firm closed eight percent lower on Tuesday.
The company’s shares closed at 1,545,000 won with around $18 billion being wiped off the value of the company, reported Thomson Reuters data.
The recall was a devastating blow to the company and now a permanent halt of production could be catastrophic.
Before the recall, analysts had estimated Note7 shipments to total between 15 million and 19 million over the third and fourth quarter of 2016 and the first quarter of 2017. The lost of opportunity could total around 10.7 trillion won ($9.5 billion), said Nomura.
Nomura also reported that the Galaxy Note7 incident may also hurt the sales of other Samsung smartphone models.
Nomura said Samsung’s fourth quarter operating profit outlook could lower by 85 percent from its current forecast to 500 billion won. The outlook for Samsung’s 2017 mobile division could fall 22 percent from current expectations.
What To Do With Your Samsung Device
Samsung advises Galaxy Note7 owners to do the following:
- Exchange your current Galaxy Note7 for a Galaxy S7 or Galaxy S7 edge and replacement of any Galaxy Note7 specific accessories with a refund of the price difference between devices; or
- Contact your point of purchase to obtain a full refund.
Furthermore, they are offering customers who exchange a Note8 device a $25 gift card, in-store credit, in-store accessory credit or bill credit from select carrier retail outlets.
Visit the Samsung website for further instructions and information about these devices.
