Samsung has a very narrow window of opportunity to fix the Galaxy Note 7, or its dominance of the smartphone market could come under pressure, investment pros have warned.
Michael Robinson, chief technology strategist at Moneymorning.com, told CNBC that if the issues with Samsung's flagship smartphone were not resolved soon, the company could miss the crucial holiday season. Doing so could hit Samsung's sales and give competitors a leg up.
"If they skip the Christmas selling season, it's going to be even worse," Robinson told "Squawk Box" on Tuesday. "On the other hand, they can't really rush [into introducing new Note 7 handsets into the market]," he said.
Nomura analysts C.W. Chung and Chris Chang said in a Tuesday note that the worst case scenario for the Note 7 would be the "termination of Note 7 sales and disposal of existing inventory of three million-plus units sold in third quarter of 2016."
But Robinson dismissed the notion that Samsung could ditch the Note 7 model altogether, because this would aggravate the quality control issues and worsen the public relations disaster. On Tuesday morning, Samsung confirmed that Note 7 production and sales were permanently being halted.
"They need to have some kind of good quality product out in the market," he said.
The South Korean electronics giant announced early Tuesday morning that it would ask all of its global partners to stop sales and exchanges of the Note 7 as it investigates overheating issues in the devices. It also warned all users to power down their devices.
This followed the company's recall of the original Note 7 model due to problems with a flammable battery, and multiple reports that the supposedly safe replacement handsets given to users were also overheating.
Major U.S. and Australian mobile carriers have suspended or halted sales of Note 7s, and on Monday Reuters reported that the Korean Agency for Technology and Standards had confirmed that there were possible defects in the replacement smartphones.