Samsung has suspended sales of its Galaxy Note 7 after a battery issue caused the devices to catch fire.
The smartphone maker also announced it would replace the devices of all customers who already have a device over the next few weeks.
Samsung said that it had conducted a “thorough investigation” and determined that there was a battery cell issue.
The issue came to light as users posted clips and photos of the devices online, often featuring a charred or melted version of the phone.
The issue apparently affects devices while they are being charged.
Samsung stated that there had been 35 cases of the incidents reported globally.
“We acknowledge the inconvenience this may cause in the market but this is to ensure that Samsung continues to deliver the highest quality products to our customers,” Samsung said in a statement.
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Samsung said that it is working with partners to ensure the replacement experience is “as convenient and efficient as possible.”
It is also working with suppliers to identify affected batteries in the market.
The device, an update to the company’s flagship phablet line, was unveiled in August. It is a productivity-driven device, which carries new security features such as an iris scanner.
Since 30 August, Samsung’s share price has fallen from $737.50 to $715, a drop of around 5 percent.
This may be a major blow for Samsung, which was boasting of strong sales of the Galaxy Note and has seen fortunes in its smartphone business rise on the back of the flagship Galaxy S7.
It will also face new competition from September, when Apple is hosting its annual launch event.
It is not clear what new devices Apple will launch at the event, officially confirmed for 7 September. Generally Apple launches new generations of the iPhone every two years, but it is rumoured that the iPhone 7 is being saved for the 10th anniversary of the iPhone.
