Samsung’s Note 7 Failure to Cost $5.3B; U.S. Bans Phone from Air Travel


In an announcement this morning, the Department of Transportation and the Federal Aviation Administration said that Samsung’s Galaxy Note 7 will be banned from all flights in the United States. In a statement, Transportation Secretary Anthony Foxx said:

“We recognise that banning these phones from airlines will inconvenience some passengers, but the safety of all those aboard an aircraft must take priority. We are taking this additional step because even one fire incident inflight poses a high risk of severe personal injury and puts many lives at risk.

Anyone violating the ban may be subject to criminal prosecution in addition to fines.”

The Department of Transportation has issued an emergency order that will prevent the devices from being taken on a flight (even if they are turned off) as of Saturday, October 15 at 12:00 p.m. Eastern Time. The smartphone is no longer allowed in checked or carry-on luggage and cannot be shipped as air cargo.

Customers who attempt to bring a Note 7 device on a flight could have their devices confiscated and could face fines. If you try and place a Note 7 in checked luggage, you could be subjected to criminal prosecution.

The notice from the transportation department comes just a few days after Samsung permanently discontinued the production of the device. The company has not yet discovered the reason for the defect affecting the new devices and they have not been able to reproduce the issue in house.

According to a report from Reuters, Samsung forecasted a total loss of about $5.3 billion. The company’s shares has fallen about 8 percent this week alone.

[via Reuters]

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