Samsung shares take a deep dive following FAA's warning on Galaxy Note 7

Samsung shares take a deep dive following FAA's warning on Galaxy Note 7
The Galaxy Note 7 saga doesn't seem to end anytime soon, even though Samsung will lose quite a lot financially speaking. The newest estimations forecast about $1 billion loss after the massive Galaxy Note 7 recall, but the brand damage might be worth even more than that.

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.

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54 Comments

1. trojan_horse

Posts: 5868; Member since: May 06, 2016

The storm will soon be over! I can see sunshine in Samsung's Note7 sales. #Note7rules

4. Bernoulli

Posts: 4359; Member since: Sep 01, 2012

doubtful, not being a hater but being real here, at least for the note 7, I don't see sales gaining much momentum compared to older devices.

13. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

PhoneArena Samsung Note 7 Review Rating Post-Explosion: 0 Pros: Spent more time with family Cons: Need a new phone and almost died

32. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Sales are still the same and almost no one seems to be canceling their pre order of the note 7. Typical iPhoneArena though, didn't even report the $40 billion dollar drop in Apple's value since the iPhone 7 announcement.

35. kiko007

Posts: 7493; Member since: Feb 17, 2016

A) That's not how sales work. They can't report on Pre-Order sales for Samsung because Samsung doesn't publish them. B) Apple's stock always goes down before a new release. People who are interested in purchasing the 7 usually hold off until the pre order process begins to buy a new phone, causing sales dips. It'll return shortly after, as it always foes.

37. kiko007

Posts: 7493; Member since: Feb 17, 2016

*does

52. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Lol the dip usually happens because Apple always disappoints on tech but usually come out ahead on sales, which is why it goes back up. This year though, even they think they won't hit last year's sales numbers so no more incline.

53. kiko007

Posts: 7493; Member since: Feb 17, 2016

Do you even 'research' bro? You keep repeating the same crap over and over again. What's the point?

8. GreenMan

Posts: 2697; Member since: Nov 09, 2015

I quote: "The storm will soon be over!' Nah, More like "The bombings will soon be over!" Korea has conducted cluster bombings on American soil via Note 7s... WE ARE AT WAR, LADIES AND GENTLEMEN... :-) G'Night...

57. NarutoKage14

Posts: 1318; Member since: Aug 31, 2016

Ha ha ha looks like North Korean agents have found a way too wage their war against the rest of the world and reduce it to piles of rubble! Someone please alert the South Koreans.

15. nctx77

Posts: 2540; Member since: Sep 03, 2013

Lol! Not happening playa. Even if Sammy replaced all phones tomorrow, they will be haunted by this for a while. Antennagate still get brought up 6 years later and Bendgate two year later. Neither I e of those cases were as bad as this.

26. tedkord

Posts: 17311; Member since: Jun 17, 2009

The biggest difference is, antennagate is still denied by both Apple and its fans six years later. That's why it's still brought up, and that's the only reason. If Apple had simply stepped up, admitted they made a mistake, and fixed it right off the bat , there would have been nothing to bring up now.

33. Finalflash

Posts: 4063; Member since: Jul 23, 2013

They still haven't confessed to or fixed bendgate. Touchdisease seems to affect all iPhone 6/+ phones and even refurbished units come out of the box with it.

58. NarutoKage14

Posts: 1318; Member since: Aug 31, 2016

Didn't Apple confirm that touch disease is only affects those who use their iPhone in the toilet and thus infecting it with deadly bacteria?

70. tedkord

Posts: 17311; Member since: Jun 17, 2009

That's a different kind of touch disease.

40. sissy246

Posts: 7074; Member since: Mar 04, 2015

True, loyal Samsung note lovers to still buy the note 7 because like me I know they will do more testing on it then they have ever done on any phone they have made. I won't upgrade this year but not because of this it's because my note 5 is not even a year old.

75. tedkord

Posts: 17311; Member since: Jun 17, 2009

It's not even about loyalty. No company gets my loyalty, they earn my business like give me the product that I want. There just isn't any phone that compares to the note 7.

61. Elfmonster unregistered

Phone users top issue: Battery. Samsung: Non-removeable exploding battery with an FAA warning causing a safety recall and nose-diving stocks.

93. DaveElliott

Posts: 147; Member since: Sep 20, 2012

Was it a lack of integrity or competency that caused this? It is usually one or the other.

94. DaveElliott

Posts: 147; Member since: Sep 20, 2012

Was it a lack of integrity or competency that caused this? It is usually one or the other. The batteries, not the decision to ban.

104. tedkord

Posts: 17311; Member since: Jun 17, 2009

It was a manufacturing defect. It happens to every major manufacturer at some point.

2. GreenMan

Posts: 2697; Member since: Nov 09, 2015

First comment baby...!

3. GreenMan

Posts: 2697; Member since: Nov 09, 2015

Oh darn... 2nd Comment... Why can't anyone see me happy nowadays...? All I ever wanted is a first comment on a HEATED article... Is it too much to ask...? Mr. Trojan Horse, you should be ashamed of yourself... Ah... I'm so, SO angry that there will be no G'Days for this article... G'Night...

21. trojan_horse

Posts: 5868; Member since: May 06, 2016

@GreenMan, you're pissed because I outraced to the #1 comment? Sorry man, lol. But I've been the first on heated articles so many times, bruh... Sorry. *_*

47. tedkord

Posts: 17311; Member since: Jun 17, 2009

Ha! I love it when the "first" comments aren't.

5. DavMor0069

Posts: 266; Member since: Dec 09, 2015

I feel kind of bad for Samsung. They had such a great year start.s7/edge,Gear Fit 2, Gear Icon,Gear s3 ,Gear vr 2016,ext.The note 7 a beast of a phone, but it will now be remembered by its explosions, giving Samsung a bad reputations. I hope Samsung can,and customers ,can see past and learn from this mistake. I am eagerly waiting for the s8 edge or whatever should come out March 2017

16. GreenMan

Posts: 2697; Member since: Nov 09, 2015

That's what happens when you ignore THE SIX... Remember 666...? Google it or consult a Priest near you...! SATAN is behind this... Samsung has jumped over THE DEMONIC NUMBER, THE SIX... Get your Note 7 exorcised immediately after purchase... "Or else the fire from the hell shall burn thy Note..." 5:76 G'Night...

7. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Some of the damage may be undone with the release of the S8 & Note 8. Their best bet will be to slash the price of the N7, and gain consumers confidence, since damage is already done.

17. nctx77

Posts: 2540; Member since: Sep 03, 2013

The momentum is gone. With android, demand falls off a cliff after one to two months. They already talk as if the S7 edge is a dinosaur lol!

18. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

If they slash the price, I just might get one.

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