Samsung confirmed publicly today that it will permanently stop worldwide production of its troubled Galaxy Note 7 smartphone model. Owners can take their phone back to the store and get a refund, or exchange it for a different Samsung model. The Note 7 is dead.

This is a serious blow to Samsung. A minor drama that affected less than 0.1% of all phones sold has been allowed to escalate into a major crisis of confidence.

Samsung now has to fill a giant hole in its portfolio. According to our Smartphone Model Tracker (SMT) service, the Note 5 predecessor shipped an impressive 15 million units worldwide in its first year.

Samsung's Note 7 missteps have handed a golden opportunity to smartphone rivals, like Apple or Huawei, to fill the product gap. It piles fresh pressure on Samsung's global leadership during the crucial Q4 2016 Western holiday season.