Fire fears halts the production of Samsung Galaxy Note 7

Samsung is facing a new crisis after reportedly halting production of its Galaxy Note 7 smartphone following renewed concerns about it overheating.

Citing an unnamed official at a Samsung supplier, South Korea’s Yonhap news agency said the firm took the decision to stop producing the phone to protect consumers.

Samsung did not confirm or deny that production had been halted, only that the production schedule had been changed “temporarily” to “ensure quality and safety matters”.

It said it would give more details when they are available.

Network operator EE issued the following statement in response to the news: “EE considers the safety of its customers to be of the utmost importance.

“Following recent media reports of further Note 7 issues in the US and Canada, we are currently reviewing options and are in direct contact with Samsung on the matter.”

Last month the Note 7 was recalledand sales supended after buyers reported its batteries had exploded and caught fire while it was on charge.

Announcing the recall, the president of the firm’s mobile business, Koh Dong-jin, said an investigation had found a battery made by one of its two suppliers was causing the phone to combust.

Users posted photos and videos on social media showing charred Note 7s with part of its 5.7-inch touchscreen burnt and melted, with some consumers labelling the device “Death Note”.  

Airlines in Europe, the US and Australia banned passengers from putting the phone in checked baggage and from charging the device while in flight.

Samsung seemed to manage the crisis by moving swiftly to announce the recall two weeks after the phone’s launch, and by promising to replace old phones with new Note 7s with a green battery icon to indicate they are safe.

But Monday’s announcement could plunge the company into a new crisis.

Shares in Samsung had rebounded after they were dumped following news of the recall, but at one point they were down 3.5% on Monday, compared with a flat broader market. They finished the day down 1.52%.

So far, Saumsung has sold more than one million Note 7 phones in 10 countries. 

On Friday the firm said it wasexpecting a 6% rise in quartely profits to $7bn (£5.6bn) despite the cost of the recall.