Samsung has officially called it quits on the Galaxy Note 7 today, ending production entirely and telling carriers to stop selling the model for good. Things started going bad back in early September, with some Note 7 units shipping with defective batteries that were prone setting on fire. While a recall was swiftly put into place and replacement units did start going out to customers, things began spiralling out of control when these newer units also began starting fires due to battery issues.
At this point, Samsung has deemed it best to just throw in the towel with this smartphone. As Bloomberg points out, this move has also caused Samsung shares to drop by almost ten percent, lowering the company’s market value by around $17 billion. On top of that, Oculus has also removed Note 7 support for the GearVR headset.
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After replacement units began shipping with battery defects, it seems that Samsung executives were scrambling to try and avoid any further damage to their reputation. The initial product recall was set to cost Samsung $1 billion but now that the Note 7 is being killed off entirely, that number will likely rise as more devices will need to be recovered and refunds will need to go out.
So far, Samsung has yet to blame anyone in its supply chain for these issues and given that replacement Note 7 units were also having problems, it seems the company may not even fully know why its phones are still exploding.
KitGuru Says: This Galaxy Note 7 fiasco may end up having a long lasting effect on Samsung and its position in the smartphone market. It will certainly be interesting to see how this affects plans for next year, whether it be with the Galaxy S8 or the Note 8.