By Se Young Lee
SEOUL (Reuters) – Samsung Electronics removed on Tuesday, its device reference, the Galaxy Note 7, less than two months after its launch, dealing a blow to the reputation and prospects of the giant south Korean after not being able to solve the safety problems of the device.
Samsung has announced the recall of 2.6 million Note 7 to the beginning of September after numerous complaints that the phone had burned and Tuesday, decided to definitively abandon the device, which costs 882 dollars, in what could be one of the failures more costly relating to the security of a product of the history of technology.
The decision to dispose of the Note 7 comes after news that some of the devices replaced had also been burned, prompting new warnings from regulators, telecom operators and airlines.
“We have decided to stop the production and sales of Galaxy Note 7, to consider first and foremost the safety of our consumers”, said the signature south Korean in a statement to the regulator stock market south Korean.
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.
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.
the Samsung lost nearly $ 20 000 million in market capitalization on Tuesday, with its shares closing with a fall of eight per cent, the biggest decline intraday low since 2008.
The device launched in August was designed to compete with the latest iPhone from Apple for 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 Samsung has withdrawn since then 2.5 million Note 7 due to battery failure.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.
UNKNOWN CAUSE
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.
“it Is more difficult to analyze the cause of accidents at this time due to the different patterns of the same”, told Reuters a head of the Agency Korean Technology and Standards, met with Samsung and a group of experts to the Monday.
The regulator of quality chinese said that Samsung would withdraw 190.984 devices sold in mainland China.
The Committee on Safety of Products for Consumers in the U.S. said that Samsung was taking the right decision by stopping the sales and the turnover of devices.
“No one should worry about if your phone puts you in danger to themselves, their family or their property”, said the president of the commission, Elliot Kaye in a statement.
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.
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