Shares of Samsung Electronics fell sharply on Tuesday after the company confirmed reports that it had halted production of its flagship Galaxy Note7 smartphone, just launched this summer.
The move came after several replacement phones reportedly smoldered or caught fire.
Shares fell 8 percent in the Korean market.
Samsung had been working with the U.S. Consumer Product Safety Commission on a voluntary recall and replacement program, spurred by reports that dozens of the new devices had burst into flames due to faulty lithium-ion batteries.
The Samsung brand, which has enjoyed a longstanding reputation for quality, likely will take a beating, as the recall and subsequent halt of sales expose something seriously amiss in the production and quality control process at the company.
"This is a disaster that keeps on growing for Samsung and their brand," observed wireless analyst Jeff Kagan.
