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Samsung Pulls The Plug On Galaxy Note7

Samsung’s Galaxy Note7 is no more.

A Samsung spokesperson confirmed to TWICE that “For the benefit of consumers’ safety, we stopped sales and exchanges of the Galaxy Note7 and have consequently decided to stop production.”

The decision to end the fire-prone phablet’s short life — which began with a global recall — follows reports of replacement models combusting as well, prompting mobile carriers and retailers to abandon the handset.

Samsung is asking consumers to power down their Note7s and return them to their place of purchase for either a full refund or to receive a Galaxy S7 or S7 edge replacement phone, along with a refund for the price difference and a $25 gift card or store credit.

In a statement, U.S. Consumer Product Safety Commission (CPSC) chairman Elliot Kay said “it is the right move for Samsung to suspend the sale and exchange of all Galaxy Note7s. I also appreciate the safety leadership role the wireless carriers and retailers are playing by temporarily stopping the sale of the Note7 and not providing the Note7 model as a replacement device.

“No one should have to be concerned their phone will endanger them, their family or their property,” he said.

It is unclear what impact the Note7 failure will have on Samsung’s industry-leading Galaxy franchise or the long-term reputation of the corporate brand. But according to a CNN report, Japanese financial services powerhouse Nomura estimated the damage from the recall alone at upwards of $9.5 billion in lost sales and $5.1 billion in potential profits.

What’s next for Samsung? Jeremy Robinson-Leon, a principal at the corporate and crisis public relations firm Group Gordon, told USA Today that the company must first figure out the cause of the battery meltdowns before it can repair its reputation.