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SEOUL, South Korea — Samsung Electronics is ending with the Galaxy Note 7, a cure of humility, to the giant south Korean, and their global image. The company already is not going to produce nor sell these phones.
The decision is a major setback for the company, the world’s largest manufacturer of phone. The device with a large screen, curved edges and relatively more expensive, won the praise of consumers and specialist and has so far been the most ambitious attempt of the company to compete with Apple in the marking of high-end.
But Samsung’s fight to respond to the criticisms that argue that the Galaxy Note 7 may overheat and explode into flames by a manufacturing defect. Last month the company asked for the delivery of 2.5 million phones in for repair. But more recently, users of the phone have reported that some of the equipment already repaired has returned to heat up, smoke and even have led to flames. The company has asked its users to turn off the phone while trying to resolve the problem.
In a statement sent to the Stock exchange of South Korea, Samsung said that it had taken a final decision to stop the production. Not be manufactured, or sell more. The source is not allowed to make their identity public, because he was not authorized to speak to the press.
Samsung has a strong position in the market in the range of the low prices and has made progress to challenge the market of Apple in the high range. Samsung has shown that it was confident in its product range 7 because it was presented shortly before Apple launched its iPhone 7.
it is Not clear how the problem started from the Galaxy Note 7. But the fight from Samsung is equal to Apple started to be introducing advances are increasingly more sophisticated in the phone and it may be that there is the problem. Industry experts aim to study in detail the chain of production to see if they were rushes or cuts which has caused the technical problems.
Lee Seung-woo, analyst at IBK Investment & Securities, said that "with the Note 7, Samsung increased its ability to compete in the market, but one wonders if it has not advanced only, without that its suppliers follow the rhythm".
The company is feeling immediately a financial problem important. Before the announcement of the end of the Galaxy Note 7, shares in South Korea lost eight percent of its value. The biggest drop since 2008. About 17,000 million dollars.
it Is difficult to know what the impact will be medium and long-term in the company and their sales. In an editorial in the largest newspaper of South Korea, the Chosun Ilbo, read: "you can Not accurately calculate the loss of consumer confidence in economic terms. Samsung should realize that it took many years for Nokia to lose its position as the main manufacturer of phones in the world."
No other phone manufacturer had taken out before the market a phone of high end in its time of popularity higher. The company believes that the sooner you do, the sooner you will avoid any confusion and anxiety about the product.
The Galaxy Note 7 was a bet the company under the leadership of vice president Lee Jae-yong, which took control of the family business’s most important country when his father, Lee Kun-hee, became ill, who since 2014 he has not been seen in public. 21 years ago, he himself set fire to 150,000 phones to show their commitment to quality.
Initially, Samsung received compliments when Lee Jae Yong, acting with the same decision, announced that it would withdraw 2.5 million phones already sold. But the problems continued and the scrutiny increased.
The agency that controls standards of technology and technicians in Korea, a public organization, recommended to the company to stop selling the device, with the argument that he had reasonable grounds to believe that his substitute could also be a defect but it is not said what and offered no details.
The government also asked the airlines of South Korea do not allow the Galaxy Note 7 will climb on the luggage of the aircraft and travelling with the passengers taken off.
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