Samsung Halts Galaxy Note 7 Production

It seems like things are going from bad, to worse and beyond for Samsung in the last few weeks. First, we had reports that their phones were exploding, then they issued a global recall, issued a lot of replacement phones, which have also been exploding, and there are even stories of third-time replacements catching fire.

Now South Korea’s Yonhap news agency is reporting that Samsung has put a temporary halt on production of the Galaxy Note 7, something I’m surprised they didn’t do sooner. The report claims that the company is taking the measure in light of consumer safety, because, ya know, their phones keep catching on fire or exploding, which isn’t good for anyone!

The company is in crisis with their current handsets, with many users still not having returned their faulty devices, and many airlines banning the devices from flights due to their hazardous nature.

Little else is known about this right now, but it’s obvious that Samsung has to do something drastic to fix this problem as quickly as possible. We’ll update you as soon as we have more information.

Update 16:30 10/10/16

Market Analyst David Cheetham of XTB.Com reached out to us with the following comment in regards to the issues facing Samsung:

“Media reports this morning have added a further twist to the ongoing saga in Samsung’s smartphone recall crisis, with claims stating that replacement devices had caught fire. The South Korean based firm last month announced a global recall of at least 2.5m Galaxy note 7 smartphones due to faulty batteries that caused some of the phones to emit smoke or spontaneously combust. The latest development, if the reports are true, will likely come as an unwanted headache to shareholders who have enjoyed an impressive ride higher this year which culminated in an all-time high being posted last Friday. Shares have fallen back from that peak today, as some investors may have decided to lock-in profits in light of the latest news which could see a second product recall in as many months – a phenomenon that is unheard of in the industry.”