Heads up, Filipino millenials and tech geeks alike!
Samsung Electronics Corporation has just announced that it will discontinue the production of the Galaxy Note 7 smartphone line, and will also halt its sales.
The Galaxy Note 7 was initially priced at about $850 in the United States, and is considered as one of the leading competitors of the Apple Corporation’s iPhone line.
The flagship smartphone model initially received stellar reviews from critics when it was first introduced into the market. However, the favorable reviews were soon eclipsed by safety concerns when multiple incidents of the phone catching fire were reported.
The announcement to discontinue its flagship smartphone line was made after the company has failed to correct a problem with the device, which causes it to combust into flames.
The company was initially forced to recall 2.5 million units of the Galaxy Note 7 a few months after the particular model was released in August.
The Korean conglomerate attempted to fix the issue with the smartphone line by changing their battery supplier, and by upgrading the smartphone’s software. However, the attempt proved unsuccessful, as replacement phones were also reported to be prone to catching fire as well.
On Monday, the corporation advised its consumers and customers to halt using their phones. This resulted to a decrease in the value of the company’s shares by 8% in Seoul, South Korea.
The company also announced that Galaxy Note 7 users would be able to exchange their phones for another model. They can begin exchanging their smartphones by Thursday this week, and the exchange program will continue until the end of the year.
It remains unclear what smartphone model would consumers be provided with for the exchange, and if they will actually be receiving compensation.
According to financial analysts from Nomura, a Japanese financial holding company, the Korean conglomerate could suffer as much as $9.5 billion in lost sales, and further lose $5.1 billion in profits.