Samsung Electronics is killing its troubled Galaxy Note 7 smartphone, a humbling about-face for the South Korean giant and its global brand. In an unprecedented move, the company will no longer produce or market the smartphones.

The demise of the Galaxy Note 7 is a major setback for Samsung, the world’s largest maker of smartphones. The premium device — with a 5.7-inch screen, curved contours and comparatively high price — won praise from consumers and reviewers, and was the company’s most ambitious effort yet to take on Apple for the high-end market.

But Samsung has struggled to address reports that the Galaxy Note 7 could overheat and catch fire because of a manufacturing flaw. Last month, the company said it would recall 2.5 million phones to fix the problem. But in recent days, Galaxy Note 7 users emerged with reports that some devices that had supposedly been repaired were overheating, smoking and even bursting into flames. And on Monday, Samsung asked Note 7 customers to power off the phones while it worked on the problem.

In a statement filed with the South Korean stock exchange late Tuesday, Samsung said it had made a “final decision” to stop production. The company will no longer make or market the phones, said a person familiar with the decision, who spoke on the condition of anonymity because Samsung did not publicly disclose details.

Samsung has a strong position in modestly priced smartphones and has made progress in challenging the Apple iPhone for the high end of the market. Samsung showed its confidence in the new Galaxy Note 7 by skipping a sixth version in the series and offering the new phone beginning in August, before Apple’s introduction of its iPhone 7.

It was unclear where the Galaxy Note 7’s problem began. But Samsung’s fight to catch up with Apple by cramming increasingly sophisticated features into the device may have been the phone’s undoing. Industry experts are scrutinizing Samsung’s supply chain to see whether the rush to market caused technical problems or led to corners being cut.

“With the Note 7, Samsung strengthened its power as a speedy competitor,” said Lee Seung-woo, an analyst with IBK Investment & Securities. “But one wonders whether it hasn’t raced ahead alone, without helping its component suppliers to catch up.”

New York Times