SAMSUNG Electronics Co. has suspended production of its Galaxy Note 7 smartphones following reports of fires in replacement devices, South Korean media said yesterday, a further setback for the tech giant trying to manage its worst ever phone recall crisis.

    Samsung’s decision to temporarily halt Note 7 production was done in cooperation with authorities in China and the United States, as two U.S. carriers have stopped exchanging or selling new Note 7 phones, Yonhap News Agency cited an unnamed source at a Samsung partner firm as saying.

    Samsung did not immediately comment on the Yonhap report.

    Problems with replacements for the Note 7 model would create a new and potentially costly chapter to a global scandal which has hurt the reputation of the world’s biggest smartphone maker. It also could add new dangers for consumers.

    AT&T Inc., the No.2 U.S. wireless carrier, said it will stop issuing new Note 7s to replace recalled phones due to reports of fires from replacement devices that Samsung has said used safe batteries. It will let customers with a recalled Note 7 exchange that device for another Samsung smartphone or other smartphone of their choice.

    T-Mobile US Inc., the No.3 U.S. wireless carrier, said it was temporarily halting sales of new Note 7s as well as exchanges while Samsung investigated “multiple reports of issues” with its flagship device.

    T-Mobile offered customers who brought in their Note 7s a US$25 credit on their phone bill.

    Australia’s largest carrier, Telstra Corp., said Samsung had paused supply of new Note 7s.

    “Samsung says it is confident in the replacement Note 7 and advises it has no reason to believe it’s unsafe,” Telstra said in a statement on its website yesterday.

    But major airlines and airport authorities urged passengers to stop using the phone on board.

    “In light of recent incidents and concerns raised about Samsung Galaxy Note 7 devices, passengers are strongly advised not to turn on or charge these devices on board aircraft and not to stow them in any checked baggage,” Hong Kong International Airport said yesterday. (SD-Agencies)