Bloomberg: AT&T considering dropping the Galaxy Note 7 completely

Samsung’s Note 7 headache could get a lot stronger.

Bloomberg reports that AT&T is considering stopping sales of the Note 7 entirely. The report, which quotes a person familiar with the situation, was published on Friday evening. AT&T may have already taken the decision, according to Bloomberg, which estimates that the carrier is Samsung’s third largest client.

The report comes after all major US carriers started allowing customers to return their Note 7’s and get different phones, even if the returned Note 7 is from a supposedly safe batch. The move is a response to an incident from earlier this week where a “safe” Galaxy Note 7 allegedly caught fire aboard a plane, prompting the cancellation of the flight. Samsung said it’s still looking into the incident.

Carriers insisted that there’s no indication that the replacement Note 7 units present any safety risk and said they only allowed the replacements for their customers’ peace of mind.

If AT&T decides to stop selling the Note 7 completely, Samsung faces a real risk of contagion, as other carriers could decide to follow AT&T’s lead. Operators may not want to associate their image with a device that competitors denounced as unsafe.

Interestingly, this week’s setbacks have not spooked investors too much. Samsung’s stock is at an all-time high, buoyed by the strong earnings estimates that the company posted for the quarter ending on September 30.