Samsung Galaxy Note 7 could blow your flight, FAA issues second warning

The US FAA has advised airline passengers to power down all Samsung Galaxy Note 7 phones, including those recently replaced.

The Federal Aviation Administration statement “urges passengers onboard aircraft to power down, and not use, charge, or stow in checked baggage, any Samsung Galaxy Note7 devices, including recalled and replacement devices”.

Samsung said it has now decided to halt production of the Note 7, after an earlier statement that it had requested outlets to stop selling the smartphone.

The electronic giant scrapped its flagship Galaxy Note 7 smartphone on Tuesday less than two months after its launch, dealing a huge blow to its reputation and outlook after failing to resolve safety concerns.

The decision to scrap the Note 7 came after fresh reports of fires in replacement devices prompted new warnings from regulators, phone carriers and airlines.

"(We) have decided to halt production and sales of the Galaxy Note 7 in order to consider our consumers' safety first and foremost," the South Korean firm said in a filing to the Seoul stock exchange.

Samsung said earlier it asked all global carriers to stop sales of the Note 7s and the exchange of original devices for replacements, while it worked with regulators to investigate the problem. The company is offering to exchange Note 7s for other products or refund them.

Samsung's decision to pull Note 7s off the shelves not only raises fresh doubts about the firm's quality control but could result in huge financial and reputational costs.

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.

Investors wiped nearly $20 billion off Samsung Electronics' market value on Tuesday as its shares closed down 8 percent, their biggest daily percentage decline since 2008.

"This is the first time that I have seen a product recall go this badly wrong," financial analyst Richard Windsor said in a note to clients. “When it comes to the damage that it will do to Samsung’s brand, we are in uncharted territory”.