There have been estimates that Samsung could lose at least a billion dollars by rushing out the Note 7 – which triggered the battery issue causing the device to explode – but this appears to be bigger than that. The Note 7 recall has just wiped off $26 billion from Samsung’s market cap since it was announced, as noted by financial data provider Factset and cited by Engadget.
Samsung’s shares apparently dropped 6.9% between the Korean Exchange’s close on Friday and Monday, which caused the terrific drop in market cap.
Meanwhile, the South Korean company is working on a way to fix the issue which triggered the massive recall. Samsung had shipped 2.5 million Note 7 handsets before the recall kicked off.
On top of the recall, Samsung will release a software update that will limit the battery charge to 60%, hoping to prevent further explosions. According to ZDNET, the OTA software update will arrive at 10:00 a.m. on September 20 in South Korea.
The manufacturer is already in talks with telcos from nine other countries – the first wave countries – to release a similar software update. This means the update might take a while until it will be pushed out to users.