Samsung shares take a deep dive following FAA's warning on Galaxy Note 7
The “explosive” Galaxy Note 7 has been the talk of the town for the last couple of weeks, but lately even air-safety regulators pointed out that it would be dangerous to fly with Samsung's flagship phablet.
No later than yesterday we reported that FAA warned passengers against using the Samsung Galaxy Note 7 smartphones during flights.
“In light of recent incidents and concerns raised by Samsung about its Galaxy Note 7 devices, the Federal Aviation Administration strongly advises passengers not to turn on or charge these devices on board aircraft and not to stow them in any checked baggage.”
That seem to have caught investors' attention as Samsung's shares took a deep dive earlier today right after FAA's yesterday announcement.
About $10 billion were shaved off Samsung Electronic's market value on Friday. The shares closed at 1.575 million won ($1,432), down 3.9%.
Samsung issued a recall last week for around 2.5 million Galaxy Note 7 devices that were already shipped to customers and retailers alike. On top of that, the South Korean company now offers exchange programs where customers can get the Galaxy S7 or Galaxy S7 edge for free instead of their ordered Galaxy Note 7.
Also, in selected countries, customers who purchased the Galaxy Note 7 receive $25 gift cards. However, despite the recall order, many consumers who pre-ordered the smartphone haven't canceled them and still wait for Samsung to send them a safe to use Galaxy Note 7.
This story is part of:The explosive Galaxy Note 7 saga (140 updates)
9 November Canadian couple abroad had to destroy their Note 7 phones to get home, files class action lawsuit against Samsung
8 November Samsung Canada will exchange Galaxy Note 7s, bought from a third-party
3 November Samsung promises to work hard towards regaining consumer trust
3 November Samsung promises to get rid of its Galaxy Note 7 stockpiles with minimal damage to the environment
1 November Chinese customers outraged after Samsung execs kneeled to apologize for the Galaxy Note 7 fiasco