This report is according to Reuters who says a source made it known to
them. Reuters also reports that top U.S. and Australian carriers also
suspended sales or exchanges of Note 7s, while major airlines reiterated
bans on passengers using the phones, after smoke from a replacement
the evacuation of a passenger plane in the United States last week.
“If the Note 7 is allowed to continue it could lead to the single
greatest act of brand self-destruction in the history of modern
technology,” said Eric Schiffer, brand strategy expert and chairman of
Reputation Management Consultants.
“Samsung needs to take a giant write-down and cast the Note 7 to the engineering hall of shame next to the Ford Pinto.”
In a regulatory filing, Samsung said it was “adjusting” shipments of
Note 7s to allow for inspections and stronger quality control due to
some devices catching fire.
It did not comment on the production halt or the cause of the fires,
while the source – who declined to be identified because they were not
authorized to speak to the media – did not explain whether specific
problems had been identified or when production was halted.
Samsung told Reuters it was investigating reports of “heat damage
issues” and would take immediate action to fix any problems in line with
measures approved by the U.S. Consumer Product Safety Commission.
On Sept. 2, Samsung announced a global recall of 2.5 million Note 7s due
to faulty batteries which caused some of the phones to catch fire.