Samsung Electronics Co Ltd has suspended production if its Galaxy Note 7 smartphones following reports of fires in replacement devices, marking a further setback for the tech giant as it tries to manage its worse ever phone recall crisis.
Samsung decided to temporarily halt Note 7 production in cooperation with authorities in China and the United States, as two US carriers have stopped exchanging or selling new Note 7 phones, South Korea's Yonhap News Agency has reported citing an unnamed source at a Samsung partner firm.
Samsung did not immediately comment on the Yonhap report.
Problems with replacements for the Note 7 model will create a new and potentially costly chapter to a global scandal which has hurt the reputation of the world's biggest smartphone maker. It also could add new dangers for consumers.
AT&T Inc, the number two US wireless carrier, said on Sunday it will stop exchanging new Note 7 smartphones due to reports of fires from replacement devices that Samsung had said used safe batteries.
The US's third largest wireless carrier T-Mobile has also temporarily halted sales and exchanges of the new Note 7s, while Samsung investigates "multiple reports of issues" with its flagship device.
On September 2 Samsung announced a global recall of 2.5 million Note 7s in 10 markets including the US due to faulty batteries causing some of the phones to catch fire.
Earlier this week, a Southwest Airline flight was evacuated after a replacement model Note 7 smartphone began smoking inside the plane, according to the family who owns the phone.
Samsung earlier said it was investigating reports of "heat damage issues" and would share its findings when the investigation is complete.
"If we determine a product safety issue exists, Samsung will take immediate steps approved by the CPSC (US Consumer Product Safety Commission) to resolve the situation," Samsung told Reuters in a statement.
Samsung shares dropped 3.3 per cent, compared with a 0.1 per cent fall for the broader market on Monday.
