Samsung has announced a halt to all production of its fire-prone Galaxy Note 7 smartphones a day after it halted global sales. The South Korean technology giant is struggling to regain consumer trust as stocks slide.
Samsung Electronics Co Ltd said Tuesday it has halted the production of its troubled Note 7 smartphones due to consumer safety concerns in which the devices have been known to overheat and catch fire.
This comes as company said Tuesday it would recall more than 190,000 devices in China after it has already recalled more than 2.5 million phones in 10 markets.
China's quality watchdog wrote on its website Tuesday: "The product being recalled has problems with abnormal heating and burning, which can have serious consequences including fire."
The state-of-the-art smartphone was launched with the expectation of scaling new heights in a highly competitive market. Instead it has left the company staring into a financial abyss asits stock slid more than 8 percent during Tuesday's trading.
What began as a technical glitch in a few devices has turned into a full-blown crisis that looks set to inflict damage on the South Korean electronics powerhouse in a sector where brand confidence and loyalty are paramount.
In the US, the federal Consumer Product Safety Commission says it has confirmed at least five cases of exploding batteries andurged customers to return the devices immediately.
"No one should have to be concerned their phone will endanger them, their family or their property," said Elliot Kaye, chairman of the safety commission, in a statement. He called Samsung's decision to stop distributing the device "the right move" in light of "ongoing safety concerns."
jar/kl (Reuters, AFP)