Samsung Electronics Co Ltd’s shares fell to their lowest level in almost two months on Monday after the tech giant told customers to switch off and return their new Galaxy Note 7 smartphones due to fire-prone batteries. Several airlines around the world asked travelers not switch on the jumbo smartphone or put it in checked baggage, with some carriers banning the phone on flights.
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Samsung has released a statement on Saturday night asking Galaxy Note 7 users to stop using the smartphone or charging it.
The U.S. consumer agency warned consumers on Friday to stop using the phone in response to reports its batteries combusted while charging or in normal use. “We are expediting replacement devices so that they can be provided through the exchange program as conveniently as possible”.
The world’s largest smartphone maker scrambled to address the problem last week, recalling 2.5 million Note 7 phones and vowing to replace all the devices which have been handed in. That move came after Samsung’s investigation into reports of fires found that rechargeable lithium batteries manufactured by one of its suppliers were at fault.
Samsung said that it knows that this is an inconvenience but it was working closely with its “partners” to ensure the replacement experience is as convenient and efficient as possible.
The recall – the first involving Samsung’s flagship smartphone – dealt a major blow to the firm’s reputation at a time when it faces a growing challenge in all market segments.
“The whole situation over Samsung is becoming more serious and complicated as more state authorities around the world are advising nationals to stop using the Note 7”, said Hwang Min-Sung, analyst at Samsung Securities.
The South Korean firm on Saturday urged all customers affected by the recall, which the firm voluntarily initiated on September 2 due to faulty batteries causing Note 7 phones to catch fire, to turn of their phones.
America’s aviation regulator – the Federal Aviation Administration – issued its warning against the Note 7 on Thursday, with many airlines, including Australia’s Qantas, immediately enforcing its advice.
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A malfunctioning Note 7 was blamed for a vehicle fire over the weekend. The Galaxy Note series is one of the most expensive lineups made by Samsung.
