Samsung has permanently halted production and sales of its Galaxy Note 7 smartphone after failing to correct a problem that was causing the devices to burst into flames.
recalled model were still catching fire and exploding. Shortly after it was released, replacement models were involved in several serious fires, causing the evacuation of a Southwest Airlines flight and a fire that sent a Kentucky owner to hospital with smoke inhalation.
Samsung Electronics shares fell 8 percent in Seoul Tuesday, wiping out about $17 billion of market value, before the Note 7 termination was announced. The stock dropped further in London trading after the news, sliding as much as 9.5 percent.
The company has not said how many new or replacement phones will be affected by the latest announcement. Analysts estimated that the original recall would cost between $1 billion and $2 billion, but that figure will now certainly rise.
Samsung told customers in South Korea on Tuesday that they will be able to exchange their Note 7 for another smartphone. The exchange program will begin on Thursday and run through the end of the year.
It was not immediately clear what customers in other markets could expect in terms of a replacement or compensation.