Samsung reportedly suspends Galaxy Note 7 production

Samsung tryst with problems is far from over. Amidst recent reports about Galaxy Note 7 replacement devices catching fire, here comes another piece of bad news from South Korean Electronics giant.

A report from news agency Yonhap suggests that the company has decided to halt production of its flagship device, that is one of the most advanced and expensive products in the smartphone segment.

The technology company that is still struggling to manage a recall of 2.5 million smartphones in a statement today said that it was “temporarily adjusting the Galaxy Note 7 production schedule in order to take further steps to ensure quality and safety matters,” without elaborating.

The recent incidents about replacement phones emitting smoke or exploding also raise questions about Samsung’s initial explanation of the battery problem. Last month, the company said it was caused by one of its battery suppliers, which the company says it has stopped using and hadn’t used for any of its replacement phones in the U.S.

The latest problem with the Note 7 will thwart Samsung’s attempts to repair its battered reputation and result in severe monetary drawbacks, with some analysts predicting that the worst recall crisis in the firm’s history could cost it US$5bn in revenues.

On Sunday, AT&T Inc., Verizon Communications Inc. and T-Mobile US Inc. said that they would stop issuing new Galaxy Note 7 smartphones to customers following concerns that the new versions are no safer from fire risk than the originals..

But despite all this, Samsung said last week that its third-quarter profit rose 6 percent to about $7bn on total sales of $43.9bn, thanks to income from Samsung’s other products.

The company sold 76 million smartphones in the second quarter of 2016, most of them lower-priced models.