Samsung is officially announcing they are stopping all production of the Galaxy Note 7.

The company said they are pulling the plug one day after saying they will stop selling the device around the world.

They recalled 2.5 million phones last month after reports of the devices exploding and catching on fire and replaced them with what was at first thought to be a safer battery.

But those too were catching fire.

Some say the company's reputation is now tarnished.

"In the short term I think it will definitely harm Samsung's smartphone business, especially in the high-end models and they will lose the (market) share to other vendors," said Peggy Cheung of IDC Asia/Pacific.

Samsung shares closed Monday down eight percent while shares at Apple increased significantly.

It's the biggest drop in eight years for the company.