Samsung halts sale and exchange of Galaxy Note 7, tells customers to stop using phone 'immediately'

Samsung Electronics on Tuesday called a worldwide halt to the sale and exchange of its Galaxy Note 7 smartphone, citing continued safety concerns, and advised all customers to stop using the device immediately.

 Major US retailer AT&T will stop giving consumers replacement Samsung Galaxy Note 7 smartphones. (AAP)

Major US retailer AT&T will stop giving consumers replacement Samsung Galaxy Note 7 smartphones. (AAP) Source: AAP

The dramatic warning came in a written statement issued a little over a month after the world's largest smartphone maker announced a global recall of 2.5 million Note 7s in 10 markets following complaints that its lithium-ion battery exploded while charging.

The unprecedented recall was a major PR blow for the South Korean conglomerate which prides itself on innovation and quality, and the situation only worsened when reports emerged a week ago of replacement phones also catching fire.

    "Power down and stop using the device immediately."

Tuesday's statement was the first formal acknowledgement of continued safety concerns and came a day after Samsung acknowledged it was easing production of the flagship smartphone.

"Because consumers' safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note 7 while an investigation is taking place," the statement said.

Analysts noted that the move came a little late given that a number of major distributors -- US telecom firm AT&T and German rival T-Mobile -- unilaterally announced a halt to sales and exchanges of the model on Sunday.

Samsung said its investigation of the "recently reported cases" involving the Note 7 was being carried out in cooperation with the relevant regulatory bodies in those markets where the recall was ordered.

In the meantime, the company advised any consumer with an original or replacement Galaxy Note 7 to "power down and stop using the device" immediately.

Analysts have suggested that Samsung, battling ever-fiercer competition in the saturated smartphone market, may have rushed production of the Note 7 with bitter rival Apple's recently released iPhone 7 in mind.

The top-of-the-line Note 7 was crucial to Samsung's growth plans this year, with the company struggling to boost sales, squeezed by Apple in the high-end sector and Chinese rivals in the low-end market, as profit has stagnated.



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Source: AAP

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