Samsung to lose $17 billion in sales as it permanently discontinues Galaxy Note 7

Samsung just announced that the company would permanently stop the production of Samsung Galaxy Note 7 devices. This is a massive blow to Samsung as it has decided to stop Galaxy Note 7 production despite doing a round of global recalls and replacements. The company had taken around three weeks to ship what it called 'safe phones,' after the first recall.

By 'Safe' the company meant that the new phones would not explode. But, within three weeks, we have heard about five cases of the 'safe phones' exploding. This is just the number that we know of through media reports. Samsung responded saying that the company is looking into the matter after the second case of replacement devices caught fire.

Soon after the report, the company announced that it will be halting the production of Note 7 to fix the matter. But, soon after the announcement the company issued a fresh statement to Al Jazeera stating that they will halt the production permanently:

"We recently readjusted the production volume for thorough investigation and quality control, but putting consumer safety as top priority, we have reached a final decision to halt production of Galaxy Note 7s."

It is better for the company to move away from the Galaxy Note 7 and concentrate on Samsung Galaxy S8 next year. Earlier the company estimated a loss of $1 billion during the first recall but now the loss is estimated up to $17 billion in the sales as reported by Android Authority. According to the estimate by analysts, the company will lose $17 billion just in terms of sales, the loss related to the disposing the current Samsung Note 7 devices safely along with compensation.

The existing Note 7 users have been requested to switch off their devices and return them to the place of purchase. The company has instructed all the carriers to allow Note 7 users to switch the troubled device with any other device from Samsung or any other manufacturer.

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