samsung
Damaged Samsung Galaxy Note 7. PHOTO: CNN

Samsung Electronics has suffered another hit over its recalled Galaxy Note 7 as smartphone major distributors stop offering replacements due to safety concerns.

The mobile company acknowledged it was ”adjusting production” of the device following this development.

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The South Korean electronics giant has struggled in the wake of its September 2 decision to issue a global recall for 2.5 million Note 7s because of complaints that the lithium-ion battery exploded while charging.

And over the past week, reports emerged of replacement units also catching fire. This prompted US telecommunications firm AT&T and German rival T-Mobile to announce Sunday a halt to recall exchanges pending further investigations.

Their announcement prompted a steep dive in Samsung’s share price, which fell more than four percent at one point in morning trade. It recovered later to close the day at 1.68 million won ($1,515)– down 1.52 percent.

The market was also reacting to a South Korean media report that Samsung had temporarily shut down Note 7 production lines after discussions with consumer safety regulators from South Korea, the United States and China.

“We are in the process of adjusting production volumes,” Samsung said in a written response to the report.

The company said the move was “to enhance quality control and to enable thorough investigations following the recent cases of Galaxy Note 7 explosions.”

Despite all its problems, Samsung on Friday issued a stronger-than-expected operating profit forecast for the third quarter, thanks largely to strong sales of memory chips and OLED display panels.