Samsung shares plunge 7.5% as it discontinues the Note7 permanently

It’s starting to look like Samsung is ready to write the whole thing off as a hideous nightmare with sales halted and no other solution in sight.

The toe-curlingly difficult situation of devices created specifically not to blow up, blowing up, was what confronted Samsung over the weekend. It was pretty hard to find any potential positives from the news and we speculated that it might be time to pull the plug on the whole brand as trust in it was destroyed.

So it has turned out according to Dow Jones Newswires, which reports that Samsung said in a filing with South Korean Regulators that it would permanently cease sales of the Note 7.

Earlier today Samsung issued the following press release, entitled ‘Samsung Will Ask All Global Partners to Stop Sales and Exchanges of Galaxy Note7 While Further Investigation Takes Place’.

“We are working with relevant regulatory bodies to investigate the recently reported cases involving the Galaxy Note7. Because consumers’ safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note7 while the investigation is taking place.

“We remain committed to working diligently with appropriate regulatory authorities to take all necessary steps to resolve the situation. Consumers with either an original Galaxy Note7 or replacement Galaxy Note7 device should power down and stop using the device and take advantage of the remedies available.”

It seems that, with its share price already down 7.5% on the previous day, Samsung decided to look facts in the face and accept that the Note7 was beyond redemption.

How a company as large, diverse and successful as Samsung could continually fail to produce a phone that doesn’t dangerously overheat is baffling. Why not just use the battery from the famously un-explosive S7, for example? At the very least Samsung has lost a year’s worth of sales of one of its most important products and it remains to be seen whether it can persuade anyone to buy whatever it calls the phablets it will presumably launch in future.

Perhaps a bit of AC/DC will cheer them up.

One comment

  1. Avatar Hakan 11/10/2016 @ 12:43 pm

    A bitter but right decision by Samsung to fend off further deterioration of the situation when consumer safety is the prime concern.

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