Samsung has halted the production of its latest flagship smartphone, the Galaxy Note 7. It has also confirmed that it is not selling the device anymore. Since a big financial loss is to be expected from this move, the South Korea tech giant is reportedly planning to focus on selling more Galaxy S7 and Galaxy Note 5 handsets henceforth.

Early Tuesday, USA Today reported that Samsung Electronics has officially put an end to its high-tech phablet after it was found out that even the replacement handsets are still prone to catching fire or exploding. 

"For the benefit of consumers' safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production," Samsung said in a statement.

In addition, unnamed sources, who divulged what Samsung is planning to do next to South Korean newspaper Hankyoreh, stated that the Galaxy Note 7 maker would focus on selling more Galaxy S7 and Note 5 devices after halting the production of its latest flagship, according to the BBC

Prior the confirmation, a source with knowledge on the issue said that the South Korean brand is considering halting the production and sale of its Galaxy Note 7 flagship smartphone. Around the same time, the South Korean finance minister Yoo Il-ho weighed in on the issue and projected the negative effect of scrapping the Note 7 altogether. 

"Right now we can't tell what the impact will be in the long term. It's up to the company and the government cannot interfere," the finance minister said, as per MacRumors. "But if they do scrap the model, it will have a negative impact on exports."

With the decision to officially scrap the Note 7, analysts are saying that the big move could certainly lead to a massive loss of up to $17 billion. Not only that, this could also tarnish the reputation of the brand in the minds of consumers and carriers, according to Reuters

The news about the end of the flagship comes the same day the South Korea giant is set to face its Cupertino-based rival in the Supreme Court as part of their long-running patent case.