Share

Samsung shares plunge after latest Galaxy Note 7 explosion warning

Samsung Electronics Co Ltd 005930.KS on Saturday urged users of its Galaxy Note 7 phones to turn in their handsets as soon as possible as part of a recall aimed at limiting the damage caused by the fire-prone devices.

Advertisement

By now news of the “is it official/is it voluntary” Note 7 recallhas reachedpretty much everyone, except, it would seem, Note 7 owners.

“We are expediting replacement devices so that they can be provided through the exchange program as conveniently as possible and in compliance with related regulations”, the statement added.

In a statement posted on its website, the South Korean technology giant advised local users to visit the company’s service centers to receive rental phones for temporary use.

Earlier this month, Samsung announced an unprecedented recall of 2.5 million Galaxy Note 7s worldwide just two weeks after the phone was launched. Samsung has said replacement Note 7s will be available in some markets including South Korea and the United States from September 19. 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.

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.

From a financial perspective, Samsung needs to have the recall wrapped up as soon as possible.

Since then, airlines and air safety agencies around the world have warned passengers against using them on flights.

Samsung said it had confirmed 35 cases of the Galaxy Note 7 catching fire as of September 1, majority occurring while the battery was being charged.

Advertisement

“The whole situation over Samsungis 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, an analyst at SamsungSecurities.

Garuda Indonesia