Samsung has permanently ended production and sales of its Galaxy Note 7 smartphones after reports the device was catching fire, the company said on Tuesday, ending one of the most humiliating episodes in the electronic giant's history.
"For the benefit of consumers' safety, we have stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production," Samsung said in a statement.
Shares of the South Korean firm closed over 8 percent lower on Tuesday after the company asked its global partners to stop sales and exchanges of its exploding Galaxy Note 7. Samsung announced the shuttering of Note 7 productions after the close in South Korea.
The company's shares closed at 1,545,000 won with around $18 billion being wiped off the value of the company, according to Thomson Reuters data.
Samsung said on Tuesday that it was asking all carrier and retail partners around the world to stop sales and exchanges of the Note 7 while it investigates the handset's battery problems. The firm is in the middle of a global recall in which it is replacing Note 7 handsets with new ones. But there have been reports of a handful of the replacement smartphones also catching fire, with one incident taking place on a Southwest Airlines plane.
South Korean newspaper Hankyoreh followed up with a report suggesting that Samsung is moving towards a permanent halt.
"It won't be easy to resume production and sales of Note 7 even if the US Consumer Product Safety Commission announces that it was not a faulty product that caused the ignition," Hankyoreh said quoting a source at Samsung.
In response to the article, Samsung told CNBC it would "have more specific action plans after talks with carriers and government bodies in each country".