Note 7 is dead: Samsung permanently ceases production of its troubled flagship phone

By , Oct 11, 2016

Fire extinguisher

After temporarily halting production of its troubled Galaxy Note 7 smartphone earlier this week, Samsung confirmed in today’s statement to TechCrunch that it’s permanently discontinued the production of its flagship Galaxy smartphone over multiple incidents of exploding batteries.

This past weekend, major U.S. carriers AT&T, T-Mobile, Verizon and Sprint stopped offering new units as replacements for those affected by Samsung’s global recall. U.S. carriers are now offering Note 7 customers replacement devices from other brands, including Apple’s latest iPhone.

A spokeswomen for Samsung confirmed to TechCrunch that the company is ending production of the device for good. “We can confirm the report that Samsung has permanently discontinued the production of Galaxy Note7,” Samsung said.

The South Korean firm said in a filing with South Korean regulators that it was ending production of the device over “customer safety”.

In a media release issued this morning, Samsung promised to ask all global partners to stop sales and exchanges of the Note 7 “while further investigation takes place”.

We are working with relevant regulatory bodies to investigate the recently reported cases involving the Galaxy Note7. Because consumers’ safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note7 while the investigation is taking place.

The company is asking Note 7 owners, including those with a supposedly safe replacement Note 7, to “power down and stop using the device and take advantage of the remedies available.”

The move comes amid reports that Note 7 replacements that Samsung had deemed safe were catching fire, too. As I mentioned, Samsung earlier this week temporarily halted Note 7 production—“readjusting the production volume” is how they framed it—but now they have reached a final decision to halt production of the phone globally, for good.

“For the benefit of consumers’ safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production,” said Samsung.


According to the South Korean finance minister Yoo Il-ho, scrapping the device altogether could easily hurt the country’s exports.

“Right now we can’t tell what the impact will be in the long term. It’s up to the company and the government cannot interfere,” Yoo Il-ho said. “But if they do scrap the model, it will have a negative impact on exports.”

The United States Consumer Product Safety Commission commended the decision, with chairman Elliot Kaye saying: “It is the right move for Samsung to suspend the sale and exchange of all Galaxy Note 7s.”

According to an earlier Bloomberg report, Samsung should blame itself because problems with the Note 7 batteries catching fire and exploding stem from the decision to launch the phone earlier than expected in an effort to beat this year’s “dull” iPhone.

Samsung Galaxy Note 7 image 006

“This has probably killed the Note 7 brand name,” said Edward Snyder, managing director of Charter Equity Research. “By the time they fix the problem they have to go through recertification and re-qualification and by the time that happens, they’re going up against the Galaxy S8 launch.”

Creative Strategies analyst Ben Bajarin, speaking to the BBC:

From Google’s perspective the timing couldn’t have worked out better for them in that they’re essentially trying to compete now in the premium sector against the likes of Apple and Samsung.

Now with this issue around Samsung and some questions and stigma around the brand, the product itself, could certainly help Google out. But I think Apple’s definitely the biggest beneficiary from here.

If there were people on the fence about whether or not to get an iPhone 7 Plus, for example, which is kind of in the same size range as the Note 7, that was one of the things that we think is benefitting Apple the most, just because that’s a competitive product and it’s an established brand.

Analysts are estimating that the Note 7 recall could end up costing Samsung as much as $17 billion in write-offs, lost profit and other expenses.

Samsung shares were down eight percent on today’s news, falling an additional 9.5 percent in London trading, their biggest daily percentage decline since 2008.

The drop has wiped $18.8 billion off Samsung’s market value. In comparison, Apple’s share price hit $117.49 in pre-market trading, its highest level so far this year.

All of this is terrible news for Samsung. The company is bound to suffer a considerable loss of consumer faith over this crisis and it could take years to recover from it.

Thoughts? Is brand damage inevitable for Samsung? And what should they do to turn this around, do you think?

Image courtesy The Loop.

Source: The Wall Street Journal, Reuters, BBC, Bloomberg, TechCrunch, The Verge Samsung

  • Share:
  • Follow:
  • Edouble

    I am an iPhone user. I hope they come back strong. I like that they push Apple to make better phones and vice versa. Everybody wins when the motivation is innovation (equals money). Something for everyone no matter the mobile OS. RIP Note 7….

    • Rowan09

      Why are you making it seem as if the Note is Samsung’s only device? Samsung will be fine.

      • Hussain Alsanona

        You’re right, but Galaxy s7 and Note 7 like iPhone 7/7 Plus. So, these phone are the flagships. Poor Samsung.

      • Rowan09

        Bad comparison because the S7 and S7 Edge are like the iPhone 7/7+. Samsung makes too many devices. Consolidate the Note into the S7 Edge with a Stylus instead of release 3 flagship devices in a year with one being a couple months from the other one.

      • Jamessmooth

        Not the point. The point is that this has hurt their brand. Especially if more washing machines explode. Lawsuits are sure to come soon. This will damage Samsung badly for some time,

      • Rowan09

        It does hurt the Note brand and little to the Samsung brand. Do you know how many people didn’t send back their Note 7s? Samsung did this to themselves to try and one up the iPhone by releasing the phone earlier than planned. Anyone can make a mistake, but Samsung knew the replacements would have issues and still didn’t care. Their own investigations were inconclusive on just the battery alone being the culprit and they didn’t care so why should I. I have a S7 Edge as well and I’m not worried it is flawed like the Note 7.

      • J. Rockwell

        hurts the Samsung brand a little?

        LMAO wake up! It was the worst launch in the history of high end smartphones.

      • AlphaPoppy


      • Rowan09

        How many users did you see switching or hear about on the web switching to another Android device or coming to IOS?

      • J. Rockwell

        Lmao. Take a business class.

        Try to understand what Brand recognition, brand perception, and brand reputation means.

        You really are lost. You’re talking about retention? Seriously? Get it together.

      • Rowan09

        Hold on so how many people do you have to show who are now not getting any Samsung device now or are you just speaking from what you think? None of my friends are leaving Samsung. Remember when Toyota had cars accelerating on its own causing accidents? What’s going on with Toyota’s brand? Even with the Note 7 issue Samsung stick took a huge hit then recovered.

      • Sharkey311

        No one is asleep jackass

      • Shadowelite123

        While its true that Samsung sells other devices besides the Note series, it does add a sense of doubt when buying other smartphones. The S7 may have been fine, however the average consumer doesn’t usually think things through and will question a stable Samsung phone simply because of this situation and its end results. Many of my family members as well as co workers and friends have already questioned whether buying their once loved android smartphone brand is still a good idea.

    • Samsung pushes Apple to innovate because they know Samsung will just copy their ideas next year so they can’t stand still.

      • Rowan09

        Technology pushes Apple and consumers not only Samsung. Where was Samsung when the original iPhone was released. Apple don’t need Samsung to innovate and vice versa because the tech industry moves fast.

      • That’s exactly my point. Samsung really doesn’t drive anyone to innovate as they are not known for bringing new ideas to the market nearly as much as they are for copying new ideas. So to say that Apple needs Samsung to motivate innovation is a bit unrealistic.

      • Rowan09

        Sorry gave a response to the wrong person, you’re absolutely right.

      • Will

        Samsung first introduced wireless charging, as well as NFC based payments, one of which Apple has still yet to adopt.

      • Actually Samsung wasn’t the first company to use NFC for payments nor were they the first to use wireless charging.

        Second, Samsung doesn’t own the rights to NFC and putting it in your phone is like deciding whether or not to adopt the latest antennas or not. It would be like saying Apple copied Samsung be releasing a 4G phone since Samsung beat Apple to it. Samsung jumped on this earlier than Apple to be sure, but that doesn’t mean anyone copied anyone here.

        Finally, wireless charging is actually a gimmick. It would be more apt to call it contactless charging or something as you still have to dock your phone to a puck with a wire attached to a wall. If you are trying to use your phone late at night in this matter or play a game it becomes highly annoying to hold both the puck and the phone without them coming apart. While it has its uses, I for one am quite happy Apple hasn’t implemented it and honestly hopes that they never do.

        TL;DR Neither idea is original to Samsung so Apple can’t have copied samsung on this and more than you can make the argument that whoever happens to be the first company to use Intel’s new generation chips in their laptops is original and everyone else is a copycat.

    • I guess you’re more noble than I am. I read this story and my first thought was that after the decades of garbage that they pulled it’s about time something like this happens to them. Personally I can’t say I hope they come back strong or at all for that matter.

  • malhal

    I think it was the stylus that pierced the battery :-p

  • Rowan09

    About time. After they did the initial test that stated it wasn’t only the battery, but something else, they should have made this move. Samsung better hope the Note 8 or whatever they call it doesn’t have 1 safety issue or it will even be worse.

    • Jamessmooth

      Agreed. The way they handled this thing from the start just didn’t sit well with me for some reason.

      • Shadowelite123

        Yea it seemed like they were trying to do good in handling things but worried too much on minimizing the current issue of combustion cases rather than heading to their investigations. They waited too long to end it and were too quick to ramp up production once they started with the replacement program. They should have spent more time researching.

      • Like ignoring the findings of Samsung SDI about the overheating components and firing them instead? Or blaming Apple rumors for causing them to rush out a product by 10 days? By accidentally texting a man in the hospital after his note exploded saying, “Just now got this. I can try and slow him down if we think it will matter, or we just let him do what he keeps threatening to do and see if he does it.”? By messing up the entire refund system and accidentally emailing the wrong set of customers about how to claim the refund? Sorry I missed the part where they tried to do anything right in this situation…

      • Shadowelite123

        Sorry I missed the part where I said they did anything right. I mentioned they tried, I never said they succeeded. I’m pretty sure I was straightly addressing how they didn’t do right in cleaning this mess up.

      • Sorry if I read into your comment. It seemed like you were saying they were trying to do the right thing and I personally don’t agree with that. It seems that at every step of the way the only thing they cared about was their reputation. They didn’t care about the truth (blaming everyone else), owning their failures (attempting to silence SDI by firing them and rushing a fixed product to market), or even the customers injured (as evidenced in the many things not the least of which is that text message).

      • White Michael Jackson

        Same I was planning on buying myself one this Christmas

  • AMB_07

    This is the right move for samsung, its too bad because the Note 7 was arguably the best smartphone on the market but this problem ruined it entirely.

    I think this is a blessing in disguise for consumers because this will not only push samsung to build their phones much better next time but that’ll make any other company think twice before cutting corners anywhere in the manufacturing process.

    Perhaps some actual advancements in the battery technology?

    • stylesbeyond

      that was the best joke of the say haha best device lol

    • Not sure what made it arguably the best smartphone on the market when last year’s iPhone still managed to out perform it despite it’s HUGE processor and spec advancements. This year’s iPhone and Google’s Pixel both have better rated cameras, and the whole design failure that caused it to overheat all point to this being one of the worst options. Remembering too that this runs Android with the bloated TouchWiz interface on top of it, IDK I’m having a very hard time with this claim.

      • Rowan09

        That’s what happens with every Samsung Flagship, it’s the best phone to date. I don’t understand why it took that crown either.

      • Shadowelite123

        Yea it wasn’t really big. Even its iris scanner was alright at best. Just a flashy gimmick that compared to the other options of that nature. Then the rest of the phone didn’t really offer anything new or big compared to the S7.

      • Hmmm… saying that the iris scanner was a flashy gimmick sounds… painful. That mental image of staring into the camera and having a flash go off. LOL. I know that’s not what you meant or said. But the wording still made me laugh.

      • Shadowelite123

        Yea haha. To be honest, i like the feature, but i doubt id use it daily with the conditions that have to be met to have it work properly. I doubt it would be used for more than a few months for even a majority of users.

      • Yeah integrating a fingerprint scanner into the home/wake button will probably always be the most convenient method ever made. Fun fact though… Did you know that the first smartphone to ever have iris scanning was the ARROWS NX F-04G made by Fujitsu?

        One better way that Apple could potentially improve on their lock screen would be to do with the phone what they did with the apple watch and Mac. I’d love it if once the phone and watch are paired and both have authenticated if the phone could auto unlock when using raise to wake assuming no notifications. Obviously it would have to be at an extremely close range to avoid issues (like in the hand wearing the watch) but still… it could be super convenient.

      • Shadowelite123

        Yea haha that would be pretty cool. Hopefully the 2017 iPhone comes out with a bang. While the recent iPhone generations were nice, I feel that Apple was and is holding back, possibly and most likely for next years iPhone. Maybe those longs year working to achieve successful implementations of the patents they filed might just show up in the next gen.

  • leart

    and here it is the new android “fireman” , that will be used in the next explosive note 8

  • leart

    rip note explosive 7
    Google had already made a special update just for that specific device.. android FIREMAN ..

    • Rowan09
    • Jon20

      It looks like Samsung will finally have an EDGE on Apple for the next phone feature… FIREPROOFING!!!

  • Jacques Hillaireau

    now that’s gonna look bad on Samsung’s History, damn harsh I would say…

    • One can hope… But considering everything else that they’ve managed to do and get away with I don’t see this lasting for long.

  • askep3

    “readjusting the production volume”
    *readjusting the production tolerance

  • I feel bad for thinking it, but there is a part of me that is happy to see this happen. Samsung hardly got into trouble when it was caught leading a worldwide movement to price fix CRT Displays, or when it was caught organizing LCD price fixing, or when it was caught doing the same thing yet again with RAM. Fortunately Apple actually caught and exposed them for price fixing the LCDs but all three of these things have cost customers worldwide billions and the small fines were but a slap on the wrist.

    Samsung also didn’t get into trouble for buying out the legal system in Korea. Every single judge that campaigns either gets paid HUGE bribes to stay out of Samsung’s way or is run into the ground before their career takes off.

    Samsung also doesn’t really get into trouble stealing patents from virtually everyone. Their tactics of dragging court battles out for years is too expensive for most and even when Apple stands up to them by the time any resolution is arrived at it has hurt Apple and it’s so far after the fact that any banned devices are no longer for sale and Samsung has already made it’s fortune and pays off the lawsuits from the profits.

    Samsung has built an empire on illegal and underhanded tactics wether it’s price fixing, bribing, weaponizing it’s product line to stifle competition from the likes of HTC, Stealing ideas from companies like Kodak, Blatantly copying Apple’s design patents, and so many more things that you couldn’t list them all unless you wrote a book… (Something several previous Samsung lawyers have done, one of which called Samsung the most corrupt company in the world)

    Seeing this phone blow up in Samsung’s face (pun intended) actually makes me smile a bit. Because finally it feel like after decades of shenanigans that have cost customers untold amounts of money they are finally getting some justice that courts weren’t able to dish out. So here’s to the company who’s employee’s have eaten documents to prevent law officers from seizing them… I hope this costs you dearly.

    • tariq

      Idk what Samsung did to u but DAMN u despise them a lot lol

      • I’ve watched them get away with anything they feel like for as long as I’ve watched the tech industry. It’s painful to watch the results of a company who thinks that they are above all laws but it becomes even more painful when their faithful fans see no wrong in them, praise their every move, celebrate every stolen idea and feature and finally turn around and blame companies trying to protect their hard work for stifling creativity. Samsung may not have hurt me as a designer and a developer directly, but the culture that has grown up around them has certainly had an effect.

    • I just feel bad because while this hurts Samsung’s reputation, the real victims here are their users, some of whom have been hospitalised due to their phones igniting. Their users don’t deserve that kind of ordeal and to add insult to injury, that accidental text* from the representative shows just what kind of attitude they have towards their own customers.

      * The text was supposed to be kept internal between Samsung representatives only, it read:
      “Just now got this. I can try and slow him down if we think it will matter, or we just let him do what he keeps threatening to do and see if he does it.”

      • Yeah and that’s why I feel so conflicted about this. I personally wish that Samsung would have taken a beating over one of their many crimes around the world not over something that injured innocent people. While I’m happy to see Samsung finally get some negative publicity I just wish it wouldn’t have come about this way ;(

  • Blip dude

    I know people who have no intentions on returning their Note 7 devices. They are working perfectly fine for them. Would I have end up returning it?? I’d say yes, but possibly not for the same reasons as others.

    • Rowan09

      Exactly that’s why Samsung’s brand will be ok for now

  • Rodney Coleman

    Note series is trash…. complete trash

    • Christopher Lim

      Arguably, I want one. I’m on an iPhone.