FAA Galaxy Note 7 Warning Wipes Out $10B in Samsung Stock

Samsung

 

Following the Federal Aviation Administration’s official statement warning passengers not to use or charge their Galaxy Note 7s on the planes, Samsung’s shares crashed in the South Korean stock market as investors wiped more than $10 billion off the company’s market value. According to The Wall Street Journal, shares of Samsung closed at 1.575 million won ($1,432) in Seoul, which is down 3.9% from yesterday. 

Samsung said Friday it was discussing the FAA move internally and declined to comment further. Samsung on Friday said “we plan to expedite new shipments of Galaxy Note 7 starting from this week in order to alleviate any safety concerns and reduce any inconvenience for our customers.”

In China, Samsung launched the Galaxy Note 7 on Sept. 1 despite the fire reports, saying batteries in phones sold there come from a different supplier. Batteries for Galaxy Note 7 phones sold in China are from Hong Kong-based Amperex Technology Ltd., a unit of Japan’s TDK Corp., one of two suppliers; the other is Samsung SDI Co.

In South Korea, where Galaxy Note 7 was launched on Aug. 19, some carrier shops said there had be no cancellations of the phone’s orders despite its being the subject of one of the largest recalls in smartphone history. “Customers have called in to ask about exchanging their devices, but we haven’t had a single cancellation yet”, said a staff member at SK Telecom Co.

Meanwhile, a 26 year old Korean school teacher told the WSJ that she is now leaning towards the iPhone 7. “Personally, getting a Galaxy Note 7 would be an easier transition for me. But I’m a bit worried it might explode”.

While the U.S. airlines have admitted that FAA’s guidelines would be tough to enforce, they are now expected to start warning passengers before boarding and during the pre-flight safety briefing not to use the phones. Some carriers, including Qantas Airways, Virgin Australia and Singapore Airlines, are already instructing against their use.

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  • Dany Quirion

    Why doesnt this make news, but apple removing a fucking hole is talked about by everyone.

  • It’s Me

    Yup. 6 plus bend under high pressure and it’s a crisis and front page news for weeks. Samsung Edge 6 does the same and even fails completely under the same or less pressure and no one mentions it. iPhone 4 suffers attenuation when held tightly, as all phones can, and it’s the end of the world. Samsung’s do the same, even documented I their manuals and no one knows.

    Samsung batteries start exploding and putting lives at risk and it barely edges out Apple removing a 100 year old port in the news.

  • Agreed

  • Tim

    It is all over the news. Front page of CNN…everywhere. For the sake of innovation we should all hope that Samsung does well. Battery problems aside, Samsung created some of the best industrial design in the industry this year. If Apple doesn’t have a strong competitor, don’t even expect the piddly upgrades they made this year. The Macbook has had the same basic design for half a decade now. That’s what your phone will be like too if there isn’t someone else pushing the envelope.

  • Joe Devolla

    anything Samsung creates is a copy, never an original design

  • Steve

    It’s because that 1000 year old port is actually useful. You can’t charge the phone and use the a headset or say the aux-in wire from car stereo for navigation.

  • It’s Me

    Of course it’s useful. So we’re the ports on macs before ditching them. So were optical drives. Are you so new you don’t remember Apple has a history of jettisoning legacy tech long before others? Their customers often, usually bear the brunt of transitions away from old tech. Life goes on.