Samsung’s Galaxy Note 7 has said it will permanently discontinue the production of the Galaxy Note 7.
The company’s stock took a nose dive of over 8% at the close of trade, which blew away billions in value. The recall of the 2.5 million handsets may cost the company as much as $17 billion.
It was expected that in the fourth quarter, Galaxy Note 7 sales would start. However, Samsung had permanently haunted the production of the phone.
Many service providers have already removed their contract offers away from the phone so, as far as consumers are concerned, it has no use anymore.
This of course is good news to smartphone rivals, Apple and Google, as they have also released their newest additions to the smartphone market, the iPhone 7 and Google Pixel. Google is set to release their phone for sale on October 20.
Some analyst say that it is best for Samsung to push towards marketing their other lines of products that they already provide consumers, to minimize the repetitional damage that has been created as well as repair the financial loss.
The technology giant’s latest product, the Galaxy Note 7, was first released for preorders August 19th. Only weeks after the phone was experiencing battery problems and after extensive usage the phone would overheat and the battery would melt.
Samsung quickly to recalled the phone only to replace it with another set of phones with the same problem. It has cost the company a hefty sum in damages and in trust. Many longtime Samsung customers are now weary that in future products to come, Samsung will have unexpected issues.