Samsung permanently scraps 'exploding' Galaxy Note 7 phones

Scrapped: The Samsung Galaxy Note 7

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Jonathan Prynn, Business Editor @JonPrynn

11 October 2016

Samsung is permanently scrapping production of its “exploding” Galaxy Note 7 smartphones to stop damage being inflicted on the company.

The South Korean manufacturer took the drastic step after its shares plummeted eight per cent last night.

It was the sharpest drop since 24 October 2008, when shares in the company closed down 13.8 per cent.

It had earlier suspended all sales of the model dubbed the “Death Note” following a new rash of reports that even supposedly safe replacement handsets were prone to catching fire.

The global recall of the £739 handset is the first in the company’s history and has rocked the reputation of the world’s biggest smartphone maker.

Analysts said Samsung had made “a complete mess” of the recall and warned it would lose customers to rival makers of Android handsets. A Samsung spokesman said: “We can confirm the report that Samsung has permanently discontinued the production of Galaxy Note 7.”

In a statement last night the company said consumers’ safety “remains our top priority” and added: “Consumers with either an original Galaxy Note 7 or replacement Galaxy Note 7 device should power down and stop using the device and take advantage of the remedies available.”

Samsung originally recalled 2.5 million phones in September after complaints of exploding lithium batteries.

Only a few tens of thousands Note 7s were sold on pre-order in Britain.

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