Samsung kills off Galaxy Note 7 smartphone

来源:搜狐教育 2016-10-11 22:46:00

SamsungsuspendsproductionofGalaxyNote7

SamsunghaspermanentlyhaltedproductionandsalesofitsGalaxyNote7smartphoneafterfailingtocorrectaproblemthatwascausingthedevicestoburstintoflames.

SamsunghaspermanentlyhaltedproductionandsalesofitsGalaxyNote7smartphoneafterfailingtocorrectaproblemthatwascausingthedevicestoburstintoflames.

ThelossofoneofitsflagshipsmartphonesisamajorembarrassmentforSamsung

(SSNLF),whichwasforcedtorecall2.5millionNote7sshortlyafterthedevicewentonsaleinAugust.

TheSouthKoreanfirmattemptedtofixtheproblembyswitchingbatterysuppliersandupdatingthesmartphone'ssoftware.Companyexecutivesissuedaslewofapologies.

Butwhenreplacementphoneswereissued,anumberofcustomersreportedthatthosedevicesalsocaughtfire,includingoneaboardapassengerjet.

SamsungonMondayadvisedallcustomerstostopusingthephones,sendingitssharestumblingby8%inSeoul.Theworld'sbiggestsmartphonemakersaidTuesdayitwaskillingoffthephoneentirely.

TheNote7wasapremiumdevicethatsoldforatleast$850intheUnitedStates.Itreceivedstrongreviewsfromcritics,whoheraldeditassleekandpowerful.Butcustomerexcitementsoonevaporatedassafetyconcernsgrew.

Samsungwaspannedforitsresponsetothecrisis--manycustomerswereconfusedoverwhethertheirphonewassafe,whetheritshouldbereturnedandwhethertheelectronicsgiantwasofferingareplacement.

SamsungtoldcustomersinSouthKoreaonTuesdaythattheywillbeabletoexchangetheirNote7foranothersmartphone.TheexchangeprogramwillbeginonThursdayandrunthroughtheendoftheyear.

Itwasnotimmediatelyclearwhatcustomersinothermarketscouldexpectintermsofareplacementorcompensation.

GivingupontheNote7willbecostly.AnalystsatNomuraestimatethetotalhitcouldreach$9.5billioninlostsalesandwipeout$5.1billionofprofit.

ButSamsung,whichhasamarketvalueofabout$194billionandannualsalesof$179billion,shouldbebigandprofitableenoughtoweatherthelossofonemodel.

--JethroMullencontributedreporting.

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