Samsung failed to survive the last few controversial months over its Galaxy Note7's exploding batteries.
In a statement, Samsung said: "Taking our customer's safety as our highest priority, we have decided to halt sales and production of the Galaxy Note7."
The pressured decision comes after Samsung yesterday recalled its replacement Galaxy Note7 handsets after five reported incidents came to light in the US. Samsung has advised customers using the Note7 and the replacement units to power down and stop using the device.
The South Korean tech giant first released the device in August, just in time to rival Apple's efforts, however despite receiving top reviews, reports surfaced about the devices faulty battery. The company then issued a worldwide recall of roughly 2.5 million devices, to which the replacement devices began showing the same issues.
This will be a severe blow to not only Samsung's bottom line but its reputation as a reputable premium device maker. Many speculate Samsung may have had cut corners on quality controls in a now-misguided attempt to put the Note7 in customers' hands before Apple's iPhone 7 series hit the market.
Shares in Samsung meanwhile continue to tank, trading down 7% in Seoul, as Apple shares hit their highest in 10 months on Monday on expectations the iPhone maker would benefit from Samsung woes.