Samsung has announced that that it is suspending the production of its flagship Galaxy Note 7 devices, a report said on Monday. This is after a number of the devices, including the replacements the caught fire.
According to the source, the halt is said to be in cooperation with safety regulations in the United States, China, and Korea. The decision also comes weeks after Samsung said it would recall over 2.5 million Galaxy Note 7 devices in what might be the biggest smartphone recall ever.
Samsung had initially said it had fixed the problem and even allowed customers to trade in the devices with new ones. Reports of fire on the replacements were however reported forcing companies in countries like Australia and the US to stop offering the Galaxy Note 7 devices.
In a disclosure to the South Korean stock exchange, which was reported by the New York Times, Samsung said it was “temporarily adjusting the Galaxy Note 7 production schedule in order to take further steps to ensure quality and safety matters.” It further said it hoped to provide an update within a month.
This recall is having a massive impact on the Samsung with analysts predicting that it could cost the company nearly $5 billion in lost revenue this year.
The company has not yet commented on this report and it is not clear yet if they have identified the problem or when they actually halted the production.