Samsung loses £11BILLION off share price after Note 7 recall

The recent large-scale recall of the Galaxy Note 7 smartphone over faulty batteries has not significantly impacted foreign consumers’ brand loyalty to Samsung Electronics, according to some online polls by internet news websites on Monday.

Tech giant Samsung has recalled all Galaxy Note7 smartphones equipped with batteries that are fire-prone.

Note 7 accessories can also be returned for a refund and Samsung is issuing a $25 gift card, in-store credit or bill credit to users for the inconvenience.

Consumers can visit Samsung’s service centers to receive rental phones for temporary use.

The announcement came on the same day that investors wiped off 17.5 trillion won ($15.7 billion) from the market value of Samsung Electronics as the recall of its fire-prone Galaxy Note 7 smartphones takes its toll.

The Canadian and USA governments both issued advisories on Friday urging passengers not to put the smartphone in checked baggage and not to use or charge the device in the cabin. The company had said it had sold 2.5 million Galaxy Note 7s that need to be replaced.

“New Note 7 replacement devices will be issued to exchange program participants upon completion of the CPSC process”.

America’s aviation regulator – the Federal Aviation Administration – issued its warning against the Note 7 on Thursday, with m any airlines, including Australia’s Qantas, immediately enforcing its advice.

The problem was so widespread that Samsung announced a worldwide recall of the device. Singapore Airlines has also banned the use or charging of the device during flights. Aviation authorities in Europe, the United States and Japan have also issued safety warnings.

The FAA statement does not order US airlines to take action. The risk the Galaxy Note 7 could pose has even resulted in several airlines banning its use on their planes.

The firm was beginning to claw back smartphone market share and had tried to pre-empt Apple by launching the nearly $900 Note 7 on August 19, about a month ahead of the latest iPhone release.

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These kinds of opinions are gaining more momentum as Samsung Electronics is battling fiercely with Apple by recovering its market share in the US with Galaxy S6.