Samsung halts production and worldwide sales of Galaxy Note 7 smartphone

Samsung is reportedly temporarily suspending production of the Galaxy Note 7.  Customers claimed replacement phones were still bursting into flames.  Around 2-point-5 million devices were recalled in August.

Samsung on Tuesday suspended all production of its Galaxy Note 7 smartphone, halted sales worldwide and told customers to stop using the device, following reports that replacements for combustible models were also catching fire. The latest effort to contain a snowballing safety crisis that threatens to derail the powerhouse global brand came as the federal consumer regulator issued an alarming warning of the possible dangers that the Note 7 posed to its owners, their families and homes. The news slammed Samsung's share price, which closed down 8 percent, following a 1.5 percent drop the day before.

The perceptions that flow from this may well spill over into other parts of their product portfolio.

Jan Dawson, chief analyst at Jackdaw Research

Tuesday's announcement came a little over a month after the world's largest smartphone maker announced a recall of 2.5 million Note 7s in 10 markets following complaints that its lithium-ion battery exploded while charging. Analysts have suggested that the recall disaster could end up costing Samsung more than $10 billion, but the larger concern will be the long-term impact on its overall brand.

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Samsung is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol(business conglomerate).Samsung was founded by Lee Byung-chul in 1938 as a trading company.