Samsung sales of the Galaxy Note 7 for fire hazard – Investing.com Spain

By Se Young Lee

SEOUL (Reuters) – Samsung (KS:) stopped on Tuesday the sale of its phone Galaxy Note 7 and asked his buyers to stop using it while investigating information on fire, fueling expectations that the technology giant remove your device reference.

The main operators of the united States and Australia was suspended Monday sales or exchanges of Note 7, while the aviation authorities banned passengers to use these phones, after the smoke of a device is replaced forzase the evacuation of a passenger aircraft in the united States last week.

The world’s largest manufacturer of advanced phones said that he had asked all the global operators that they stopped the sales of Note 7 and replacement of devices, while working with regulators to investigate the problem. The company offers change the Note 7 for other products or your refund.

“consumers with a Galaxy Note 7 original or a Galaxy Note 7-substitution should turn it off and stop using it,” said the company in a statement.

The decision of Samsung to check out the Note 7 of the shops for the second time in less than two months not only generates new doubts about the quality control of the company, but it could generate a huge financial cost and reputational.

analysts say that the final end of the sales-Note 7 cost Samsung up to 17,000 million dollars and mancillaría the image of other of their phones in the mind of consumers and operators.

investors remained to 15.4 trillion won (13.800 billion) of the market capitalization of Samsung on Tuesday, to drop its shares up 7.3 percent to a minimum of two weeks.

The device launched in August was designed to compete with the latest iPhone of Apple (NASDAQ:) for the supremacy in the market of high-end mobile. Well received by critics, her first problem was a huge demand for devices.

But a few days before the launch, the images of devices Note 7 char began to appear in social networks, the first symptom that something was working wrong. Samsung has withdrawn since then 2.5 million Note 7 due to battery failure.

“This has likely killed the brand Note 7 – who knows if they will be able relanzarlo,” said Edward Snyder, managing director of Charter Equity Research.

In line with press reports from the south Korean, a source told Reuters that Samsung was studying to definitively suspend the sales of the Note 7.

UNKNOWN CAUSE

A person knowledgeable of the matter told Reuters on Monday that Samsung had temporarily stopped the production of the Note 7. It was not clear when it would reopen.

The company did not comment immediately on whether he had identified the source of the fire in the devices of substitution, although responsible in Seoul said they were studying several possibilities, including the batteries.

The us authority on aviation, and the ministry south Korean transport were added to fears about the device, saying that no Note 7 should be used or loaded on board aircraft.

Verizon (NYSE:), the largest mobile operator in the united States, said it would stop marketing the Note 7 of the upcoming festive season sales.

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