Shares of tech giant Samsung Electronics Co Ltd 005930.KS fell to their lowest level in almost two months on Monday, hurt by worries the fallout from a recall of its Galaxy Note 7 smartphone may deal a bigger blow than anticipated.
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American Airlines, Delta Air Lines and United Airlines are now telling passengers to keep the phones switched off until they deplane.
In a further blow to the company, the US Consumer Product Safety Commission has also urged American users to turn the phones off and leave them off.
The call from the South Korean company, the world’s largest smartphone maker, comes after USA authorities urged consumers to switch the Galaxy Note 7 off and not to use or charge it during a flight. So we reached out to the USA call center and a representative said Note 7 users should power off the phone and bring it back to the retail location where it was purchased.
Shares in the firm – South Korea’s largest by value – had dived 7.3 percent on the Seoul stock market by early afternoon to 1.46 million won ($1,318).
There are at least two more cases that Samsung said it is aware of one at a hotel in Perth, Australia, and another in St. Petersburg, Florida, where a family reported that a Galaxy Note 7 left charging in their Jeep had caught fire, destroying the vehicle.
The recall comes at a crucial time for Samsung, as its rival Apple just announced its own latest versions of the iPhone. Sprint customers who bought a Note 7 can get a “similar device” until Samsung resolves the battery issue and makes replacements available.
A new Note 7 device with a new battery would be provided to South Korean consumers beginning September 19. “We are asking users to power down their Galaxy Note 7s and exchange them now”.
Industry officials said a string of recent polls have again proven the high level of consumer loyalty towards the Samsung brand.
Pratana Patanasiri, THAI vice-president of aviation safety, said the ban was due to global recalls and sale suspensions of the Note 7 device after a number of batteries exploded. For safety reasons it has stopped sales of the phones until it is clear which ones have the dodgy batteries.
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In a widely-reported case last week, a Florida man allegedly saw his vehicle catch fire after he had left a Note 7 charging inside it, with images on social media showing a Jeep engulfed in flames.
