The news of throwing in the towel comes as a great embarrassment on the part of Electronic giant, Samsung having been forced to earlier recall 2.5 million Note 7s shortly after the device went on sale in August.
On Monday, October 10, 2016, the company came out and officially admitted to failing to fix the problem that was causing the devices to burst into flames.
In as much as the electronic giant had attempted to rectify the problem by changing battery suppliers and updating the smartphone’s software, [even while company executives issued a slew of apologies], when replacement phones were issued, a number of customers reported that those devices also had caught fire.
Samsung on Monday therefore informed all its customers to stop using the phones. The world’s biggest smartphone maker said Tuesday it was killing off the phone entirely.
According to CNN, The Note 7 was a premium device that sold for at least $850. It received strong reviews from critics, who heralded it as sleek and powerful. But customer excitement soon evaporated as safety concerns grew.
Samsung was panned for its response to the crisis — many customers were confused over whether their phone was safe, whether it should be returned and whether the electronics giant was offering a replacement.
Samsung told customers in South Korea on Tuesday that they will be able to exchange their Note 7 for another smartphone. The exchange program will begin on Thursday and run through the end of the year.
It was not immediately clear what customers in other markets could expect in terms of a replacement or compensation.
Giving up on the Note 7 will be costly. Analysts at Nomura estimate the total hit could reach $9.5 billion in lost sales and wipe out $5.1 billion of profit.
But Samsung, which has a market value of about $194 billion and annual sales of $179 billion, should be big and profitable enough to weather the loss of one model.