The world's top smartphone maker, Samsung, is in crisis mode.

The Galaxy Note7 is officially dead, with the electronics giant announcing it has permanently discontinued production of the fire-prone smartphone.

The news came shortly after the electronics company pulled the Note7 from shelves for the second time in as many months due to reports of the devices exploding.

Anyone who has a Note7 or who got a replacement following the initial recall last month have been told to stop using it.

The hugely popular brand, which faces new Android competition from Google's Pixel smartphone, did not need this latest disaster.

But how did the South Korean tech giant get to this point? Here are the key developments in Samsung's Note7 nightmare.

Samsung unveils the Galaxy Note7

In early August the company described its new smartphone as setting "a new standard for large-screen devices".

It was well received by critics — its first problem was merely a shortage as pre-orders overwhelmed supply.

Later in the month, sales began in 10 markets including the US and South Korea.

The first report of a Note7 exploding surfaced in South Korea less than a week after it went on sale.

Samsung delayed shipments of Note7s to South Korean carriers, but sales continued in other markets.

First recall due to exploding batteries

The Galaxy Note7 smartphone had been well received by critics. ( Supplied: Samsung )

On September 2, Samsung announced a global halt on sales of the Note7 after multiple reports of exploding batteries.

In Australia, major retailers like JB Hi-Fi, Telstra and Optus immediately stopped selling the phones, and Samsung Australia recalled more than 50,000 devices.

Samsung said it would prepare replacement devices for the phones already sold.

The company said it had found 35 cases of problems with the smartphone, and concerned customers should return the phone to the outlet where they purchased it.

Plane passengers advised against packing the phone

Less than a week later, the US Federal Aviation Administration (FAA) urged travellers to not turn on or charge Note7 smartphones on aircrafts or stow them in checked baggage.

Consumer safety officials in the US also advised people to stop using the smartphone.

On September 15, the Consumer Product Safety Commission formally announced a recall of about 1 million Note7s.

It said there had been 92 reports of batteries overheating, including 26 reports of burns and 55 reports of property damage, including fires in cars and a garage.

The Galaxy Note7 was later banned worldwide on flights.

Samsung confident with new batteries

Samsung had blamed the batteries supplied by one of its two battery suppliers and assured consumers other parts of the smartphones were fine.

By September 29, the company said more than 1 million people globally was using a Note7 with a safe battery.

New sales of the device started in South Korea and by early October it was available in stores across the globe.

Samsung said it had "implemented three specific software changes affecting the battery indication".

Despite the new confidence, the Galaxy Note7 was among the products named at this year's Shonky Choice awards in Sydney.

In response to the award, Samsung Australia said it had recalled about 81 per cent of its Note7 smartphones in Australia.

"Samsung products are rigorously tested before being released for sale," a spokesman said.

Replacements start emitting smoke, catching fire

There have been several reports of replacement Note7s catching fire. ( Supplied: Shawn Minter )

On October 6, the first report of a replacement Note7 catching fire surfaced in the US.

A family travelling on a Southwest Airlines flight from Louisville to Baltimore reported their replacement device had begun smoking.

The FAA said in a statement it had confirmed a Samsung phone caused the smoke and it was investigating the incident.

Further reports said replacements had exploded: Shawn Minter told the Verge website his new Note7 caught fire on his nightstand.

Adjustments made, but it doesn't stop second recall

Samsung appeared to double down over the new claims: the company said it was adjusting Note7 shipments for quality control inspections.

In a statement, the tech giant said it was "temporarily" adjusting the production schedule to "ensure quality and safety matters".

A day later, Note7 users were told to stop using their replacement devices, and Samsung halted all sales and exchanges of the phone.

"Because consumers' safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note7 while the investigation is taking place."

Does that mean the batteries are still faulty? Well, South Korean safety officials are trying to figure that out.

Oh Yu-cheon, from the Korean Agency for Technology and Standards, said they were looking at a different problem from the one Samsung said it had found in the first batch of Note7s.

"The improved product does not have the same defect. That's why we think there is a new defect," Mr Oh said.

ABC/wires