Samsung Note 7 production stopped permanently, $18 Billion loss estimated

After gaining lot of controversy, Samsung has announced that it is ending the production of the Galaxy Note7 and permanently discontinuing it worldwide. The news comes just one day after Samsung put a global stop on sales of the defective device.

Samsung confirmed the official discontinuation of the Galaxy Note 7 line in a filing with South Korean regulators today. In the filing, the company said:

Taking our customer’s safety as our highest priority, we have decided to halt sales and production of the Galaxy Note 7.

What happened after launching Note 7?

After being announced back in August and being met with generally positive reviews, the Note7 first came under fire — quite literally — after reports of units exploding surface on the internet. After 35 cases had been reported, Samsung issued an official recall of the device, which sent everyone in a tizzy and airlines and airport authorities calling for an official ban on usage of the device in several countries.

After that, Samsung start replacing not just the affected but every Note7 it sold and issuing a new device with an updated battery pack and a green battery indicator so the customers and authorities alike could tell them apart.

But after the replacement units also started catching fire, most notably one on a Southwest Airlines flight 994 from Louisville to Baltimore, which had to be evacuated when a passenger’s replacement Note7 caught fire, Samsung eventually asked everyone to power them down.

Current Scenario

Potentially, Samsung Electronics’ market valuation shed $18.8 billion (8%) on Tuesday and that figure is certain to grow even further. If this situation had affected any other smartphone company, it would have likely meant the end of its mobile business. So at the very least Samsung can be grateful it has such a wide-ranging and profitable portfolio that is capable of picking up the slack.

Samsung already announced that who have bought this device can get refund by returning device. If you have bought this device you can go from where you bought this device and get your money back. That is all what Samsung did with Note 7 which was totally disastering for company as well as customers. Hopefully, Samsung will get back on track but it will take time to get fully recovered.

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