Few weeks back i.e. on the 19th of August, Samsung launched its Galaxy Note 7, but recently, a warning was issued about the phone catching fire and passengers were told not to use it on flights.
However, all this has caused a lot of pressure on Samsung’s stock. The warning given by the company was of no use and Galaxy Note 7 handsets were recalled, all across the globe.
Soon after FAA (Federal Aviation Administration) issued this warning, the company’s stock was shaken badly. This recall caused a lot of damage to the largest smartphone maker of the world, as 16 trillion won i.e. $14.3 billion have been wiped off from the market value of Samsung.
The shares of Samsung Electronics fell at around 6.98%, which made it reach the lowest level.
An analyst at HI Investment & Securities, Myung Sub Song stated that due to this recall issue, around 1 trillion won can be wiped off. As per the Analysts, the shipments of Note 7 would total to around 6 million in 3rd and 4th quarters respectively.
Reports quoted Myung as saying
“The most important thing is whether the new Note 7 which will be released from now on will have another problem or not. If it has a problem then it will have a bad impact to the Note 7 and also Galaxy S8 which will be released in the first half of next year,”
So, isn’t it a big loss to Samsung? Do let us know your thoughts in our comments section below!
