Home Science & Technology Samsung Shares Drop 6% After Galaxy Note 7 Recall

Samsung Shares Drop 6% After Galaxy Note 7 Recall


Samsung shares dropped more than 6% on September 12 after the South Korean company urged users not to use its flagship Galaxy Note 7 phone and exchange the device due to fears it might catch fire.

The company hit a two-month low after recalling 2.5 million phones last week following reports of the Galaxy Note 7 exploding during or after charging.

Photo Samsung

Photo Samsung

Airline passengers were warned by the FAA not to use or charge the phones while on board.

Aviation authorities in several other countries and individual airlines have since then also banned the use of the devices on their flights.

Samsung had already said it would replace all devices that customers would hand in.

According to the company, battery problems were behind the phones catching fire, but Samsung said it was difficult to work out which phones were affected among those sold.

The Galaxy Note 7 was launched last month and has been otherwise generally well-received by consumers and critics.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.