Samsung stops production of the fire-prone Galaxy Note 7

Flagship phone effectively canned after replacements also go up in smoke

Samsung has confirmed that it has stopped production of the Galaxy Note 7 smartphone after reports that even replacements for defective Note7 devices were going up in flames.

The company has already recalled 2.5 million Note 7 handsets and asked mobile operators and retailers to stop selling the dangerous devices.

One of the Galaxy Note 7 buyers nearly killed when his smartphone went up in flames was Michael Lering of Kentucky. He woke up this weekend to find his bedroom filled with smoke and his replacement Galaxy Note 7 on fire. He was taken to hospital with acute bronchitis and smoke inhalation.

Another involved a new Note 7 fire catching fire in Houston, Texas. Daniel Franks was having lunch with his wife and daughter when a replacement handset caught fire on the table.

In a carefully worded statement released on Tuesday, Samsung is advising customers to power off the device and seek a refund or exchange it for a different phone.

The statement added that Samsung and its global carrier and retail partners have stopped selling and exchanging Note 7 smartphones. This comes after UK carriers EE and Three confirmed on Monday that they had stopped swapping Galaxy Note 7s following US operators AT&T and T-Mobile.

"We are working with relevant regulatory bodies to investigate the recently reported cases involving the Galaxy Note 7," Samsung said.

"Because consumers' safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note 7 while the investigation is taking place.

"We remain committed to working diligently with appropriate regulatory authorities to take all necessary steps to resolve the situation.

"Consumers with an original Galaxy Note 7 or replacement Galaxy Note 7 should power down and stop using the device and take advantage of the remedies available."

Samsung's shares dropped 7.5 per cent on Tuesday following this latest move, the biggest daily percentage decline since 2008, wiping more than $18bn off the company's value.

Now, with reports from the The Wall Street Journal and Bloomberg that Samsung has ceased production of the smartphone, its share price will almost certainly fall further.