Samsung Electronics is permanently stopping production of its Galaxy Note 7 smartphones, dealing a huge blow to the South Korean electronics giant and potentially shaking up the competitive smartphone market.
Samsung released a statement Tuesday confirming it will no longer make the device after several reports that original and replacement models of the smartphone caught fire or exploded.
"For the benefit of consumers' safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production," Samsung's statement said.
Shares in Samsung Electronics closed down 8% — its biggest daily percentage drop since 2008, according to Reuters — with almost $20 billion wiped off the company's value Tuesday.
The death of the Note 7 could also usher in sweeping changes among Samsung's executive ranks. The company typically announces a reorganization at the end of the year, and the short, troubled history of Note 7 is sure to prompt changes — perhaps in the mobile, quality-control and supply-chain operations, say analysts.
Sami Brown is one of many people reluctant to give up her Samsung Galaxy Note 7 phone.
She waited a long time before she upgraded her old Galaxy phone. She loves the way the Note 7 captures the beauty around her home.
She posted a peaceful video of the foggy morning on Instagram.
“A friend commented today that watching that video this morning just really kinda reset her. So it’s, it’s kinda fun --so I’m always out here taking pictures," she said.
But she's heard stories like Shawn Minter's from Virginia.
“I woke up to a sound it sounded like a spaceship was taking off. It was completely cooked and singed, glass is broken beginning to come apart," Minter said.
The phone that burned was a replacement. It was supposed to be safe.
Another replacement may have caught fire on a Southwest Airlines flight last week.
“It’s a shame, because it really is a great phone!" Sami said.
Samsung is asking owners to turn off the phone and take it back to the place you bought it, again.
Samsung told Note 7 owners the same thing two weeks ago when it issued replacement phones for the first batch of Note 7’s.
Sami is conflicted and thinks a lot of other people will be too.
“So, you're gonna have a lot of people say I don’t want to get rid of it. And now that its discontinued and they're not gonna make it. Do I just hold on to it and take my chances? But then you get what you get,” she said.