Technology

'Engineering hall of shame': Samsung halts production of Note 7 amid recall crisis

A man passes by Samsung Electronics Galaxy Note 7 smartphones at the company's shop in Seoul, South Korea, Monday, Oct. 10, 2016. Samsung Electronics has temporarily halted production of its Galaxy Note 7 smartphones, South Korea's Yonhap news agency reported Monday, following reports that replacements for the fire-prone phones were also overheating. (AP Photo/Ahn Young-joon)

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
Summarized by

2.5M

RECALLED

Galaxy Note 7

On Sept. 2, Samsung announced a global recall of Note 7s due to faulty batteries that caused some of the phones to catch fire. It ordered new batteries from another supplier and started shipping replacements to customers. But similar problems arose with a replacement Note 7 on Oct. 5, which began smoking inside a Southwest Airline flight.

Topic in-depth

Samsung addresses concerns over Galaxy Note 7 replacement issues

Samsung’s media arm continues code red damage control in the wake of the latest report surrounding a faulty Galaxy Note 7. The incident, which occurred on a Southwest flight earlier this week, further complicates the matters for several reasons beyond the already troubling fact that it played out on a plane – which, thankfully, was still at the gate.
Tech Crunch

Samsung Galaxy Note 7

Samsung Galaxy Note 7(marketed as Samsung Galaxy Note7) is an Android phablet smartphone produced and marketed by Samsung Electronics. Unveiled on 2 August 2016, it was officially released on 19 August 2016 as a successor to the Galaxy Note 5. The Galaxy Note 7 is an evolution of the previous model which inherits the hardware and improvements of the Samsung Galaxy S7, including the restoration of expandable storage and IP68 water resistance, and introduces new features to the series such as a dual-sided curved display, improvements to the bundled stylus and new software features which utilize it, an iris recognition system and a USB Type-C port.Demand for the Galaxy Note 7 on-launch was high, breaking pre-order records in South Korea and causing international releases to be delayed in some markets due to supply shortages.

Samsung Electronics

Samsung Electronics Co., Ltd. is a South Korean multinational electronics company headquartered in Suwon, South Korea. Through extremely complicated ownership structure with some circular ownership it is the flagship division of the Samsung Group, accounting for 70% of the group's revenue in 2012.