11 October 2016

Samsung completely ditches Galaxy Note 7.

Samsung will completely ditch the disastrous Galaxy Note 7 after a catalogue of errors since the device was recalled due to it reportedly exploding in some instances.

"Production of the device will come to a permanent end" the company said in an update to markets earlier today.  Samsung was forced to announce a temporary halt to production just yesterday, after reports that even replacement devices had issues.

One of Samsungs flagship devices, the Galaxy Note 7 was unveiled in August but by September the firm was forced to order an unprecedented recall and replacement after several reported incidents of the battery exploding, but even those replacements were found to have faults. The Note 7 was lauded as being even more advanced than the most recently available iPhones, featuring eye-scanning technology that moved a step beyond Apples use of biometrics. It is also waterproof to depths of five feet, has a curved screen and is compatible with a new VR headset.

The costs of recalling the device was already running into the billions of dollars, analysts estimate, but calling time on the Note 7 is likely to cost even more. However, Samsung is also likely to take a further hit from the impact on its reputation.

Samsung’s superb profitability in Android handsets is based on the fact that it out-ships its nearest competitor by more than two to one, and a big loss of brand equity will give Huawei an opportunity to close the gap. In the dog-eat- dog world of smartphone brands, the hit to Samsung has already pushed shares in rival Apple to all-time highs for 2016.

Shares in Samsung slid further, down eight per cent today, on news of the device being pulled forever.

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