Samsung Announces Total Discontinuation of Galaxy Note 7 Production Over Safety Concerns

Crisis-hit Samsung Electronics Co. announced on Tuesday that it is permanently halting the production and sale of its flagship Note 7 smartphone, less than two months after its launch over persisting battery safety issues.

The tech giant stated in a filing with South Korean regulators that has decided to scrap the Note 7 after a new wave of reports of replacement devices overheating and catching fire, which were supposedly safe and free from battery defects. The move caused Samsung's share to tumble 8%, clearing almost $20 billion off the smartphone maker's market value and recording its biggest one-day decline since 2008.

The decision to stop Note 7 production comes after the South Korean conglomerate had halted sales and exchanged of the device earlier on Tuesday and called on customers to stop using the smartphone due to the reported safety issues.

Analysts state that permanently pulling note 7 off the shelves could cost the company up to $17 billion and could raise doubts about Samsung's quality control.

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