Amid reports of fires and battery problems with Samsung Galaxy Note 7, the company has stopped its sale all over the world and asked all telecom service providers and retail shops globally to stop sales and exchanges of the phone, conceding the defeat for the first time against the juggernaut of iPhone 7 and iPhone 7 Plus release all over the world including India on Oct.7.
Samsung Electronics recalled, asked consumers to stop using the Galaxy Note 7 and halted its production and distribution, pending the probe into its safety by investigators. On Monday night, it has officially asked all telecom carriers and retailers in the US and elsewhere not to sell the Note 7.
It has advised consumers with either an original or a replacement Note 7 to power down and stop using the device. The Samsung announcement follows its suspension of production of the Note 7. The initial problem related to overheating batteries in some Note 7s to manufacturing issues at one of its suppliers. Samsung said it has stopped using batteries from that supplier.
The global recall of 2.5 million Note 7s that began soon has created ruckus among the consumers, carriers and airlines due to the smartphone’s faulty batteries which caused smoke or fires in midflight. cosnequently, the shares of Samsung Electronics fell by more than 7% in Seoul.
Samsung’s losses from the recall would amount to more than $10 billion in market value, besides facing regulatory warnings and reprimands in its future product sales. Samsung in a company statement on Monday said, “We remain committed to working diligently with appropriate regulatory authorities to take all necessary steps to resolve the situation.”
The U.S. Consumer Product Safety Commission is currently probing five incidents, two in Kentucky and one each in Minnesota, Virginia and Texas, where the device exploded. The damage to the brand from the recall not only amounts to huge $10 billion in loss but also lower its prestige in facing the competition with Apple’s iPhone 7 and iPhone 7 Plus, besides the competition from the Chinese major Huawei Technologies.[samsung galaxy Note 7 recall, stopped galaxy Note 7, galaxy note 7 fire, galaxy note 7 battery problem, world recall, loss, america probe, samsung electronics]