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Tech

After safety issues, Samsung kills the Note 7

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Tech

After safety issues, Samsung kills the Note 7

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COMING UP:After safety issues, Samsung kills the Note 7

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00:00:01
>> Samsung is pulling the plug. The company ending production of its flagship Galaxy Note 7 smartphone Tuesday, less than two months after its launch. Following numerous reports of the phones catching fire. The Note 7 was already in the middle of a huge recall, when reports emerged that the replacement devices were also catching fire.
00:00:19
Tuesday's announcement dealing a huge blow to Samsung's reputation and outlook, in what could be one of the costliest product safety failures in tech history. The Galaxy Note 7 was supposed to compete with Apple's iPhone 7 for supremacy in the smartphone market. But shortly after launching, images of charred Note 7s began appearing on social media, in the first sign that something was seriously amiss with the gadget.
00:00:40
Then came the warnings from regulators, phone carriers, and airlines, some banning the device altogether. Analysts say a permanent end to Note 7 sales could cost Samsung up to $17 billion. And tarnish its other phone products in the minds of consumers and carriers. The company is offering to exchange Note 7s for other products or refund them.
00:00:59
But the damage is already done. Investors wiped nearly $20 billion off Samsung's market value on Tuesday as it's shares closed down 8%, their biggest daily percentage decline since 2008.