Samsung is to abandon production of its Galaxy Note 7 smartphones due to consumer safety concerns.<br /><br /> In a statement, the company says it has made a “final decision” to stop making its star product.<br /><br /> It comes in the wake of reports of devices spontaneously catching fire.<br /><br /> <br /><br /><br /> Breaking News: Samsung will permanently stop producing the Galaxy Note 7 after reports of the devices catching fire https://t.co/AstIyYncPu— The New York Times (@nytimes) October 11, 2016<br /> <br /><br /> <br /><br /><br /><br /> Sales likely to be halted<br /><br /> <br /><br /><br /><br /> Sources close to the problem say Samsung is also likely to halt sales of the flagship device permanently. <br /><br /> Samsung did not immediately comment on this.<br /><br /> <br /><br /><br /><br /> Lawsuits<br /><br /> <br /><br /><br /><br /> Samsung turns off Galaxy Note 7 for good https://t.co/i4HblUlpAZ pic.twitter.com/fykUylp0He— Huffington Post (@HuffingtonPost) October 11, 2016<br /> <br /><br /> <br /><br /><br /> Samsung also faces lawsuits.<br /><br /> At least two customers are taking the company to court in the US to claim compensation on damages stemming from the faulty smartphone.<br /><br /> In its September 15th recall, the US regulator said the firm has received:<br /><br /> <br /><br /> 92 reports of batteries overheating <br /><br /> 26 reports of burns <br /><br /> 55 reports of property damage <br /><br /> <br /><br /> <br /><br /><br /><br /> <br /> <br /><br /> The Timeline<br /><br /> <br /><br /><br /> * August 2<br /><br /> Samsung unveils Galaxy Note 7 in New York<br /><br /> * August 24<br /><br /> First report of explosion in South Korea<br /><br /> * August 31<br /><br /> Samsung delays shipments <br /><br /> * September 2<br /><br /> Announces global recall of 2.5 million phones citing faulty batteries<br /><br /> * September 8<br /><br /> US FAA issues warning about use on planes<br /><br /> * September 9<br /><br /> US consumers told to stop using phones<br /><br /> * October 6<br /><br /> Passengers evacuated from US flight due to smoke from Note 7<br /><br /> * October 10<br /><br /> Samsung says it is “adjusting shipments” of the Note 7 for inspections and quality control due to more reports of fire<br /><br /> * October 11<br /><br /> Samsung asks customers to stop using all Note 7 smartphones and halts sales and exchanges of the device globally as it investigates fire claims.<br /><br /> <br /> <br /><br /> <br /><br /><br /><br /> The business<br /><br /> <br /><br /><br /><br /> Analysts predict Samsung’s lost sales from the Note 7 could top 15 billion euros.<br /><br /> The firm was expected to generate this profit during the device’s product cycle.<br /><br /> Samsung, the world’s top-selling smartphone company, is waiting for the results of an inquiry by the US safety regulators.<br /><br /> Some investors and analysts say scrapping the Note 7 and focusing on more successful models could limit the financial and reputational damage.<br /><br /> Samsung has a market value of 235 billion US dollars, as well as 69 billion US dollars in cash and equivalents. Analysts say the loss of one model could be absorbed.<br /><br /> The feeling is the bigger problem could be the long-term impact on the company’s reputation and brand.<br /><br /> <br /><br /><br /><br /> Samsung's decision to end Galaxy Note 7 production is a drastic step https://t.co/YVrSJ6P2Ne<br /><br />Instant reaction: pic.twitter.com/8XXAZsqaxY— Bloomberg (@business) October 11, 2016<br /> <br /> <br /><br /><br /><br /> What they are saying<br /><br /> <br /><br /><br /><br /> “The Note 7 is forever going to be tarnished an
