Samsung halts the Production of Galaxy Note 7

Samsung to permanently end the production of Galaxy Note 7, after multiple reports of SAFE Note 7 catching fire. This is really on the cards as Samsung has been facing lot of criticism regarding Note 7’s safety measures. Note 7, which was released less than two months ago, could be one of the worst failure in tech history. Moreover, Samsung has also recalled the 2.5 million sold devices. This $885 device not only bring a huge blow to Samsung profits, but dents the Samsung reputation and quality control measures as well.

Official Statement:

Note 7 had been released as a flagship device and one of the most expensive one by Samsung. But since its release, it had been in the limelight due to some of these devices blown up and catching fire. Recently after the multiple reports of replaced Note 7 also catching fire, Samsung has to intervene as it has announced:

“We have decided to halt production and sales of the Galaxy Note 7 in order to consider our consumers' safety first and foremost," the South Korean firm said.

Samsung on its US website asked all the carriers to stop the sales of Note 7.

“While the investigation is taking place, Samsung is asking all carrier and retail partners here and around the globe to stop sales and exchanges of the Galaxy Note7. “

Moreover, Samsung has asked Note 7 users to turn off the phone and not to use it as it can pose a safety risk.

“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.”

Return Policy:

The Korean Tech Giant also announced the return policy regarding the Note 7. Galaxy Note7 Owners need to do one of 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.

Customers who exchange a Note7 device to another Samsung device will also receive a $25 gift card, in-store credit, in-store accessory credit or bill credit from select carrier retail outlets

Overall Impact:

This will hurt Samsung’s reputation big time, in the longer run. According to analyst,

“This incident may cause approximately $17 Billion loss to Samsung in financial terms and the damage to goodwill cannot be calculated”.

Apart from huge financial blow, Samsung has to rebuild its reputation after this incident because Note 7 was really a huge disappointment for not only Samsung but for Samsung fans as well. The real cause of Note 7 failure is still unknown, as we have not heard any word on it. However this failure may benefit some of the rival smartphone brands out there.