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Samsung halts sale and production of troubled Galaxy Note 7

Reporter: Li Sien, Wang Jinru 丨 CCTV.com

10-12-2016 16:35 BJT

South Korean tech giant Samsung has announced a permanent halt to sales and production of its troubled Galaxy Note 7 smartphone. Officials cite concerns that batteries in replacement handsets may also be catching fire. CCTV's Jack Barton has this report from Seoul.

If you own a Samsung Galaxy Note 7 handset, switch it off right now. That's the advice from the world's largest smartphone maker, which announced on Tuesday a total end to worldwide sales and production of the troubled phone.

“I think that’s a very good decision because this device has caused too much damage and it’s too risky. And I don’t think it’s just a battery problem. It’s more of a design problem,” research director of Counterpoint Technology Market Research, Tom Kang, said.

In the U.S., there’ve been further reports of batteries combusting in replacement phones just days after a flight was evacuated due to replacement model emitting smoke.

South Korean consumers welcomed the move as a good first step in winning back trust.

It's a blow for Samsung, which had already recalled about two and a half million of the devices last month, but also to the country, according to the government.

"Samsung is coming under intense pressure from South Korea’s finance minister who claims the country’s economy will be damaged if the galaxy Note 7 is completely scrapped,” Jack Barton said.

There’s speculation Samsung may move quickly to a Note 7 S, but also that the Note series may be terminated.

What is certain is that even the current measures are hurting Samsung, which saw shares tumble eight percent on Tuesday, the company’s biggest loss in eight years.

“For the next few months, Samsung will experience losses in smartphone sales and revenue, but that’s something they'll have to take,” said Tom Kang.

Samsung is offering to exchange Note 7s for other products or give a full refund.

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