VIDEO – The first manufacturer of smartphones in the world, has announced the suspension of sales and exchanges of its defective device. It also recommends that users turn off their phone.
Samsung is not able to manage the technical problems of the Galaxy Note 7. To put an end to the wave of incidents caused by its newest product, the south Korean manufacturer announced that it would ask its partners throughout the world to stop sales and exchanges of its phones. He also urges owners of the device to stop using it as long as it has not completed its investigation into the case of a fire. “Consumers, whether they have a Galaxy Note 7 original or template Galaxy Note 7 replacement, should turn off the device and no longer use it,” says the company.
This announcement, which led some to believe that the giant south Korean company will eventually dispose of the latest version of the main competitor of the Apple iPhone, you plunge the title Samsung to the stock Exchange of Seoul. This Tuesday morning, the share fell by 7.02%, showing the strongest declines in the odds. “The reason consumers prefer Apple or Samsung, it is for the reliability of the product. Here, the damage in terms of image quality will be inevitable, and Samsung will have a hard time to reverse the trend,” said Greg Roh, HMC Investment Securities. “The time that they resolve the problem and they go back through the process of recertification and requalification, this will be the time to launch the (Galaxy) S8″, says for his part, Edward Snyder, managing director of Charter Equity Research.
temporary Suspension of production
Two telecom operators american, AT&T and T-Mobile US, as well as the australian Telstra had already announced a temporary suspension of the sale or exchange of the Note 7. In France, the Post office does not accept in its package lithium batteries, just built-in to the Galaxy Note 7. As for the airlines, they continue to prohibit the use of this phone in flight since the new incident occurred last week in an american plane.
on Monday, the group had already announced in a press release the”adjustment” to the decrease of its production volumes. According to the south Korean agency Yonhap, Samsung will, in fact, temporarily suspend the manufacture of this phone in a factory in Vietnam.
More than 2 million devices recalled
After launching with much fanfare in mid-August, the Galaxy Note 7 has faced a series of explosions, causing the recall of more than 2.5 million models. Images of phones charred had then arisen on the social networks. A hard blow for a group that claims to be the champion of innovation and quality.
Supposed to do with the shadow to the iPhone 7, the Galaxy Note 7 is at the origin of the greatest fiasco in the sector of new technologies for a manufacturer of smartphones. Ironically, Samsung was counting on this model to sustain its growth by the end of the year and face increased competition from chinese brands to Apple, but also Google, which has launched last week its first smartphone. On Friday, the company was counting on an increase of its operating profit in the third quarter, higher than analysts ‘ expectations.
the cost of The recall of the phones has been estimated at over a billion dollars. But it could increase if it turns out that the replacement models had them as technical defects, which seems to be the case. Last week, a replacement model assumed course caught fire in a plane at the departure of Louisville (Kentucky), causing the evacuation of the aircraft. Three other suspected cases have been listed.
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