The decision to suspend the production of Galaxy Note 7 was taken in cooperation with consumer authorities in South Korea, China and the US, the official said on condition of anonymity.
“The measure includes Samsung plant in Vietnam which is responsible for global supplies of Galaxy Note 7,’ the official said.
Financial Times and Wall Street Journal informed that the Galaxy Note phone production was suspended in July citing ‘well-informed sources’ but the South Korean group Samsung has not yet confirmed this decision.
Samsung has begun marketing the Galaxy Note 7 ‘phablet’ (terminus of a device between smartphones and tablets) on August 19 but in September were forced to announce the withdrawal from the market of 2.5 million copies after more incidents of the phone battery catching fire. Later, the South Korean group decided to replace the devices already sold worldwide, but information emerged last week that the replacement devices have also caught fire.
Some analysts have estimated at least 1,000 billion won (804 million euros) was the impact of the withdrawal of Galaxy Note 7 phones on profit recorded by mobile devices division of Samsung Group. If they confirm that the replacement models also have a technical problem, those costs could increase further.
Problems with the newest phone batteries might adversely affect Samsung’s reputation and profits at a time when the South Korean company faces increased competition from Apple’s high-end segment and the segment from the Chinese rival’s cheap phones. Mobile devices provide the bulk of profits for Samsung, the world’s largest maker of smartphones, memory chips and televisions.