In a bid to save the device, some Samsung engineers have begun working on a replacement for the phone, the Korean firm announced.
The company says that the project is already underway, and that it will be ready for sale by the end of this year.
The company says the replacement device is being developed in collaboration with the US company Kogan.
The replacement device will be a smaller device that is designed to work with older Samsung devices.
Samsung is also developing a new version of the Galaxy Note8 to replace the Note7.
The Galaxy Note9 will be the company’s final handset, and the company says it is aiming to launch a new flagship smartphone in the second half of the year.
Samsung will also announce a new “mobile first” strategy in its next financial year, which is expected to see the company make some major changes to its business strategy.
The strategy, known as Mobile First, aims to boost profitability by focusing on consumer electronics.
Samsung will launch a refreshed Galaxy S8 and S8 Plus smartphone in 2019.
The S8 will be available in three colors: gold, silver and white.