Samsung Electronics Co Ltd. suspended production of its flagship Galaxy Note 7 smartphones, a source said on Monday, after reports of fires in replacement devices added to the tech giant's worst-ever recall crisis. The move poses fresh trouble for Samsung because it had promised that its new Note 7 with a green battery icon is safe, suggesting that it has failed to fix a problem that has already hurt its brand and threatens to derail a recovery in its mobile business. Major airlines reiterated bans on passengers using the phones, after smoke from a replacement device forced the evacuation of a passenger plane in the U.S. last week.
If the Note 7 is allowed to continue, it could lead to the single greatest act of brand self-destruction in the history of modern technology. ... Samsung needs to take a giant write-down and cast the Note 7 to the engineering hall of shame next to the Ford Pinto.Eric Schiffer, brand strategy expert and chairman of Reputation Management Consultants.
The move came after decisions by AT&T and T-Mobile to stop giving new Note 7 replacement smartphones to consumers. When Samsung issued a global recall on Sept. 2, the company blamed the batteries supplied by one of its two battery suppliers and assured consumers that other parts of the smartphones were fine.
I think the cleanest thing to do is to give up on the Note 7.HDC Asset Management fund manager Park Jung-hoon, whose fund owns Samsung shares