Samsung, South Korean tech giant, has warned owners of Galaxy Note 7 to turn off their phone after more reports of device catching fire. company will also stop shipping flagship phone to stores. device, launched in August, was set to rival Apple's iPhone. Samsung engineers must now conduct an investigation into what is causing so many phones to catch fire. Samsung had already been hit following recall of 2.5 million phones in September after many burst into flames when their batteries exploded. This new episode further damages company's credibility as many of exploding phones are those that had batteries replaced in September and were deemed to be safe.
Industry analysts are now predicting how much latest trouble will cost company. South Korean media is reporting that company could discontinue producing phone. However, South Korea's finance minister Yoo Il-ho has warned that country's exports would be damaged if it did this. He said: "Right now we can't tell what the impact will be in long term. It's up to company and the government cannot interfere, but if they do scrap model, it will have a negative impact on exports." The Korea Times said: "It is urgent that company recover its brand image and the only way to do this is to place quality and customer satisfaction above anything else."
