TechnoparkToday.com(Oct, 2016) > Samsung is permanently discontinuing production and sales of the Galaxy Note 7 smartphone, owing to safety fears over defective batteries including in replacement handsets.Samsung’s decision to kill off the Note 7 caps a dramatic few months for the company. It had briefly enjoyed rave reviews for the $880 phone before reports emerged that the batteries inside the devices were spontaneously overheating and catching fire.
Having launched the phone in August, Samsung soon afterwards issued a massive global recall of the phones. When replacement devices started catching fire too.
Samsung has around $70 billion on its balance sheet, so these are costs that it can absorb. But the bigger problem for the company, which derives around half its profits from its mobile division, will be the impact of the Note 7 crisis on its reputation, and the Galaxy brand.