Samsung Electronic KRW5000 (SSNLF) Suspends Production of Galaxy Note 7

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Samsung Electronic KRW5000 (OTCMKTS:SSNLF) has reportedly suspended production of its Galaxy Note 7 smartphones.

Galaxy Note 7, Samsung, SSNLF
Source: Samsung

The decision to suspend production of the Galaxy Note 7 comes after reports of the devices catching fire. This problem has been found in the original release of the smartphones and in newer versions that had supposedly fixed the issue. The problem is connected to batteries in the devices.

Samsung says that it will continue to look into the matter and hopes to have an update ready within a month’s time. Suspending the production of the Galaxy Note 7 may be its best option right now. Several wireless carriers in the United States and Australia have said they won’t be carrying the device due to the reports of fires.

Samsung’s decision to suspend production of the Galaxy Note 7 could set its revenue for the fourth quarter back by as much as $630 million. This would leave the company to rely of its semiconductor business for profit. It also allows rival smartphone maker Apple Inc. (NASDAQ:AAPL) the chance to sell its new iPhone 7 and 7 Plus devices without as much competition, reports The New York Times.

Owners of the Galaxy Note 7 that are looking for a refund will have a tough time with Samsung. It hasn’t been all too clear with its instructions and the whole process has become a bit of a mess. However, there is hope. All major wireless carriers in the United States are allowing customers to exchange the Galaxy Note 7 for a different device, The Verge notes.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/10/galaxy-note-7-samsung-ssnlf-2/.

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