Samsung Halts Production of Defective Galaxy Note 7 Smartphones
The wave of negative news surrounding the Samsung Galaxy Note 7 smartphones may have reached its peak last month when the company issued a product recall and determined that it would suspend production of new phones due to the risk of fires and explosions.
Samsung, the major global company based out of South Korea, has been under intense scrutiny in recent months as more and more people have reported that their cell phones caught fire and exploded.
The embattled tech company initially tried to handle the potential public relations disaster by issuing a recall of the defective phones, with Samsung recalling more than two million smartphones. However, it later turned out that even the repaired and replaced smartphones were still prone to catching fire and exploding. As a result, Samsung finally had to make the costly decision to completely halt production of the Galaxy Note 7 smartphones. It has been estimated by tech company observers that Samsung could potentially lose $5 billion in revenues as a result of the production decision.
The reason for the smartphone explosions is believed to be a defective in the batteries, which can lead to the phones emitting smoke and occasionally catching fire.
The safety concerns became so serious that at least two mobile carriers in the United States indicated that they would no longer issue Galaxy Note 7 phones to customers. Moreover, the Federal Aviation Administration (FAA) got involved and banned the defective phones from flights.
For more information, see the Guardian article, “Samsung Galaxy Note 7 Crisis Deepens with Reports of Production Halt.”
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