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Samsung Crisis – Production of Galaxy Note 7 Is Suspended

Samsung Crisis – Production of Galaxy Note 7 Is Suspended

Samsung has stopped production of its Galaxy Note 7 mobile phone after consultation with safety regulations. This decision has been reached after a number of reports of phones overheating and subsequently causing fires. Samsung explained that measures were taken in order to ensure quality and safety matters. The company was forced to produce new models of the smartphone after complaints of faulty batteries, however the problem was not completely solved and the complaints did not stop.

US companies have refused to replace the model and said that they will halt all sales of the phone instead. Samsung commented saying that the issue of overheating was caused by a “rare” manufacturing error that resulted in the battery’s “anode-to-cathode [negative and positive electrodes]” coming into contact. However, after an incident last week when a domestic flight in the US was evacuated after a replacement Note 7 started emitting smoke in the cabin, Samsung announced that they will further their investigation of the problem. Experts say that Samsung has to take actions to limit the harm to its image. Following these events, shares in Samsung Electronics went down 1.5 per cent in Seoul.

 
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