Samsung Electronics has stopped producing its Galaxy Note 7s -its flagship brand smartphones. This move was a response after multiple reports of fire were filed even for replacement phones. Top American and Australian carriers suspended both sales and exchanges of the model. The Note 7 was also banned by a number of airlines all over the world. This was done after smoke was found to come from a replacement set inside a commercial jetliner. This incident forced evacuation of that passenger plane.
Samsung, in its regulatory filing, said that it was in the process of “adjusting” the Note 7 shipments to permit inspections and more robust quality controls. It also said that the company was investigating all “heat damage issues”. It reiterated of taking adequate number of steps to fix all problems in accordance with approved measures as stated by US Consumer Product Safety Commission.
Samsung did not make any comments based on the halt in production or cause of fires. There were also no official reports about whether there were identifications of a few particular problems. No official announcement was also made for halt in production.
For Samsung, it is a nightmare and possibly the worst recall crisis in company history. The company was in more trouble when it was discovered that the replacement phone also caught fire. It means the Korean company has failed to fix the phone. The brand has already hurt its image and now threatens to destroy the recovery which Samsung has been trying to do in the mobile business. According to Eric Schiffer of Reputation Management Consultants, the company brand will self-destruct if the Note 7 model is allowed for further sale by the company. If this happens, it will be the biggest self-destruction in modern technology history. He has recommended that the company should wash its hands off the product immediately.
The Korean company on September 2 announced a worldwide recall of about 2.5 million Note 7 sets due to the presence of faulty batteries inside them. A few phones caught fire due to them. The company sourced new batteries from a different supplier and soon began to ship the replacement to customers only two weeks later. The problem, however, was not resolved as a replacement Note 7 started to smoke inside a plane and the aircraft had to evacuate. Shares of Samsung Company closed 1.5 percent down.