Shares of tech giant Samsung Electronics Co Ltd 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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Samsung 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.
The flag carrier’s move came after some foreign airlines stopped their customers from carrying the phone with them on flights.
“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.
Samsung reportedly made the announcement after US authorities urged owners to turn off their handsets and to not charge them when they are onboard a plane.
In a statement posted Saturday on its website, Samsung asked users around the world to “immediately” return their existing Galaxy Note 7 and get a replacement.
“We are asking users to power down their Galaxy Note 7s and exchange them as soon as possible”, said Koh Dong-jin, Samsung’s mobile president.
What makes lithium batteries catch fire?
Consumers can visit Samsung’s service centres to receive rental phones for temporary use.
The Director General of Civil Aviation, BS Bhullar has issued a public notice prohibiting the use/charging of Samsung Galaxy Note 7 mobile phone on board an aircraft. However, buyers here who obtained their Galaxy Note 7 through parallel sales channels are not eligible for a refund.
Reports that the phones’ batteries have combusted while charging or in normal use prompted the U.S. Consumer Product Safety Commission to stop using the Note 7 device.
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Scandinavian Airlines said Saturday that it has prohibited passengers from using the Galaxy Note 7 on its flights because of concerns about fires.
