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Despite months of negative headlines, Samsung expects to see Q3 operating profit grow and its stock hit an all-time high last week

After a recent speight of reports that the replacement phones for the Samsung Galaxy Note 7 have been exploding, Samsung Electronics Co. has temporarily halted all production of the device, as first reported by Yonhap News Agency.

The halt includes a plant in Vietnam that is responsible for building devices that ship globally.

The production suspension has been issued in cooperation with consumer safety regulators in South Korea, the US and China.

The suspension of production comes after the company issued a global recall in early September after people began to report instances of their phone exploding from battery defaults.

Also Read: Replacement Samsung Galaxy Note 7 phone burns up on an airline

The recall, however, has not been smooth, as just days after new phones were available in South Korea, people began to complain of their phones overheating. Last week, a Southwest Airlines domestic flight in the US had to be evacuated after a man’s replacement phone began to overheat and emit smoke after he turned it off.

In the US, all four major telcos (Verizon, Sprint, AT&T and T-mobile) have stopped carrying the Galaxy Note 7 and are allowing users to exchange it for a different phone.

One reason why the Note 7 roll-out debacle has been such a disaster is because this was the flagship product, and widely considered to be the best smart device to have come out in awhile. For Samsung, it has been akin to losing its queen in a game of chess.

Furthermore, while Apple courted controversy by removing the headphone jack on its iPhone 7, it has enjoyed moderately strong sales, putting to bed concerns that we were beginning to see the beginning of the end of Apple.

Finally, as Samsung flounders, it now has a new major competitor in the Android market as Google’s recently launched Pixel phone is sure to grab a chunk of the high-end market share.

Also Read: Samsung fails to placate Chinese users after 6th phone ignites

While the Samsung Galaxy Note 7 launch has been an undeniable disaster, it has actually not done much damage to Samsung corporate. The company expects to have see a slight rise in its Q3 operating profit and last week its stocks hit an all-time high.

e27 has reached out to Samsung for comment on the production halt and will update accordingly.

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