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Note 7 saga wipes out $17 billion from Samsung's market cap

By Daniel Petrov

Updated: Oct 11, 2016, 6:04 AM

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Samsung shares caught the Note 7 flu today

Samsung just issued in Korea today the same statement that it did for the US yesterday - that it is halting all Note 7 sales and replacements until the relevant consumer safety bodies in the US, Korea and Taiwan have finished their investigation into the replacement units catching fire. Asked if/when will sales (and possibly production) resume, a Samsung spokeswoman replied that there is nothing decided yet on future plans about the Note 7 production.

Meanwhile, the statement that Samsung posted today in Korea, wiped out more than $17 billion of market cap from the company's stock, which was down more than 8% when the stock exchange closed. Ouch. Of course, market cap is not like solid revenue or profit figures, but this virtual sum is pretty large even for a conglomerate like Samsung. The company should be thankful that the battery fiasco isn't happening with its bread-and-butter Galaxy S line, but rather with the niche Note market, as the repercussions then would have been even more disastrous.

source: Bloomberg

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Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.