Samsung has stopped the worldwide sales and exchanges of its faulty Galaxy Note 7 smartphone.
The electronic giant cites the continued safety concerns as it advises the smartphone owners to stop using the device immediately.
Samsung said owners of the original Note 7 devices or replacements obtained after the first recall should turn off the power and seek a refund or exchange them for different phones.
South Korean authorities said they had found a new product defect in the Note 7 and also asked consumers to power them down or to exchange them.
The announcement follows several new incidents of the Galaxy Note 7 – Samsung’s most popular smartphone –overheating in the past weeks. U.S. consumer safety officials said they are investigating five incidents of fire or overheating since the company announced a recall last month.
These incidents will deal a further blows to arguably the world’s largest smartphone company.
U.S. Consumer Product Safety Commission chairman released a statement calling Samsung’s decision to suspend all sales and exchanges ”the right move” amid the ”ongoing safety concerns.”
Elliot Kaye said:
”No one should have to be concerned their phone will endanger them, their family or their property.”
2.5 million Galaxy Note 7 smartphones were recalled for what the company called faulty battery problem.
Samsung’s decision to pull the Galaxy Note 7 off the shelves for the second time in two months shines light on the tech company’s struggles and inability to fix its problems.
The company’s shares dropped 7.5% on Tuesday, taking more than $18m off its value. This is the biggest daily percentage decline of the company since 2008.
The luxury Galaxy Note 7 was crucial to Samsung’s growth plans this year. The company is struggling to boost sales with competition coming from Apple in the high-end sector and Chinese tech companies in the low-end.