Samsung scraps Galaxy Note 7

Samsung Electronics Co Ltd scrapped its flagship Galaxy Note 7 smartphone on Tuesday less than two months after its launch, dealing a huge blow to its reputation and outlook after failing to resolve safety concerns.

Samsung announced the recall of 2.5 million Note 7s in early September following numerous reports of the phones catching fire and on Tuesday it finally pulled the plug on the $882 device in what could be one of the costliest product safety failures in tech history.

The decision to scrap the Note 7 came after fresh reports of fires in replacement devices prompted new warnings from regulators, phone carriers and airlines.

"(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 in a filing to the Seoul stock exchange.

Samsung said earlier it asked all global carriers to stop sales of the Note 7s and the exchange of original devices for replacements, while it worked with regulators to investigate the problem. The company is offering to exchange Note 7s for other products or refund them.

Samsung's decision to pull Note 7s off the shelves not only raises fresh doubts about the firm's quality control but could result in huge financial and reputational costs.

Analysts say a permanent end to Note 7 sales could cost Samsung up to $17 billion and tarnish its other phone products in the minds of consumers and carriers.

Investors wiped nearly $20 billion off Samsung Electronics' market value on Tuesday as its shares closed down 8 per cent, their biggest daily percentage decline since 2008.

A TIMELINE OF THE TECH GIANT’S WORST-EVER RECALL CRISIS
Aug 2: Samsung launches Galaxy Note 7 at a New York media event
Aug 19: Samsung starts Galaxy Note 7 sales in 10 markets, including United States and South Korea
Aug 24: Report of a Note 7 explosion surfaces in South Korea
Sep 1: Samsung starts Galaxy Note 7 sales in China
Sep 2: Samsung announces global recall of 2.5 million Note 7 phones, citing faulty batteries
Sep 8: US Federal Aviation Administration advises passengers to not turn on or charge Note 7 smartphones aboard aircraft or stow them in plane cargo
Sep 9: US Consumer Product Safety Commission urges Galaxy Note 7 users to stop using their phone
Sep 15: US Consumer Product Safety Commission formally announces recall of about 1 million Note 7 phones
Sep 16: Florida man sues Samsung for burns from Note 7 explosion. Samsung says to resume Note 7 sales in South Korea on September 28
Sep 19: Samsung says a Note 7 phone a China user claims caught on fire was caused by external heating
Sep 21: Verizon Communications, Sprint Corp begin taking orders for new Note 7s
Sep 29: Samsung says more than 1 million people globally now using Note 7s with safe battery
Oct 6: A Southwest Airlines plane in the United States evacuated due to smoke from a Note 7 device on board
Oct 10: Samsung says it is adjusting Note 7 shipments for inspections, quality control due to more phones catching fire
Oct 11: Samsung scraps Note 7 production

The premium device, launched in August, was supposed to... read full story