14 DAY TRIAL // Samsung stated in a filing with South Korean regulators on Tuesday that the company would permanently discontinue production and sales of its Galaxy Note 7 smartphone. The decision was made after the first product recall didn’t go as planned and replaced devices still had a battery problem.
The decision was made one day after Samsung temporarily halted sales and production of the Galaxy Note 7, according to the Wall Street Journal.
"Taking our customer's safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7," the company said.
Samsung shares decline a whopping 8% in a day
Yesterday, Samsung’s shares dropped 8%, recording the biggest one-day decline in the past eight years. The drop came after multiple incidents involving replaced Galaxy Note 7 units prompted all major US carriers and retailers to stop selling the smartphone.
Analysts say that the whole Galaxy Note 7 situation might cause a $17 billion financial hole for Samsung, seeing how the first global recall cost the firm an estimated $5 billion.
Samsung will now focus on the upcoming Galaxy S8, in an attempt to restore some of its lost reputation. However, sales of other Samsung smartphones might also be affected, considering that the whole situation has seriously crippled Samsung’s reputation long term.
All owners of the Note 7 are advised to power down their devices and return them to the place of sale for a full refund or a completely different device from the retailer or carrier’s lineup.
On its website, Samsung announced that it offers customers the option to exchange their original or replaced Note 7 phones with a Galaxy S7 or Galaxy S7 edge or get a full refund. Samsung will be making an official announcement soon, possibly after the CPSC presents the conclusions of its investigation.