In a sudden development, Samsung has reportedly decided to suspend production of Galaxy Note 7 smartphones. According to reports, the company has taken this tough stand after two separate incidents of fire in replaced handsets.

Incidentally, the replaced handsets were marked with Black Square, which indicates safe. The first incident was reported inside a passenger flight with the phone exploding and catching fire before several passengers.

Samsung Galaxy Note 7 exchange suspended by US carriers

Announcing the news, the Yonhap News Agency disclosed that Samsung’s decision to temporarily halt Galaxy Note 7 production was done in cooperation with authorities in China. Moreover, the relevant authorities in the United States were also consulted. Meanwhile, two US-based carriers have stopped the exchange process and selling of new Galaxy Note 7 handsets.

In a statement, AT&T said that it will halt exchange of new Galaxy Note 7 smartphones due to reports of fires from replacement phones tagged as safe batteries. Meanwhile, T-Mobile disclosed that the company is temporarily suspending sales of new Galaxy Note 7 including exchanges. This is because Samsung is currently investigating “multiple reports of issues” with its premium flagship phones.

T-Mobile offers compensation for Samsung Galaxy Note 7 customers

As compensation, T-Mobile is offering customers with $25 credit on their phone bill. However, this is applicable only for those customers who purchased Note 7 smartphones from them.

On September 2, Samsung announced a global recall of 2.5 million Galaxy Note 7 units across 10 markets. The main problem was with the faulty batteries, which caused the phones to catch fire.

SK Telecom, which is South Korea’s largest mobile service provider, disclosed that they are closely monitoring the whole situation. Furthermore, KT Corp also added that they have no immediate plan to suspend the sale or exchange of new Note 7 units. It remains to be seen as to what will happen in India.

According to industry analysts, the recent move is the major setback for the company since it failed to manage the worst ever smartphone recall process. First, the company failed to manufacture a safe handset. Secondly, the company declined to provide any information about Note 7 explosion incidents.

To save from crisis, Samsung issued an OTA update, which restricts the charging capacity of the phone to 60 percent. This has caused widespread anger among customers since they are not getting the full value for the money they paid. Even Bollywood actor Amitabh Bachchan criticized the move by directly attacking the company over Twitter.