Samsung takes a plunge after halting Galaxy Note 7 production

October 11, 2016 | 09:00

(0) user say

At the end of the transaction session on October 10, Samsung Electronics Co. (Samsung)’s shares plunged as much as 5 per cent, the largest intraday drop in a month, after Samsung has temporarily suspended the production of Galaxy Note 7 smartphones after some replaced units have caught on fire, according to newswire Bloomberg.

illustration photo source: thanhnien.vn

The list of halted production factories includes Samsung Electronics Vietnam Thai Nguyen, that is responsible for the global shipping of the Galaxy Note 7.

Samsung has encouraged Note 7 owners to have their devices replaced with new ones. However, there have been eight cases of replaced Note 7 unites that were reported to have also caught on fire, five in the U.S, one in South Korea, and one in Taiwan.

A probe into the incident in Korea, conducted by Korea Testing Laboratory and SGS Korea, concluded that the fire was caused by a "strong external shock or the device being squashed."

No results of the investigations into the seven cases outside of South Korea have been announced for now.

Samsung has not released an immediate comment on the temporary suspension of the production of Note 7, but it is likely to delay the resumption of sales in Europe and India, which is set for October 28.

On October 11, Samsung called a worldwide halt to the sale and exchange of its Note 7 smartphones, citing continued safety concerns, and advised all customers to stop using the device immediately.

Earlier on September 2, the company suspended sales of the oversized products and recalled 2.5 million Note 7 devices that had been shipped worldwide after faulty batteries started sporadically exploding while charging.

According to Samsung’s replacement policy, total end-users will receive new devices kitted out with new IMEIs (International Mobile Equipment Identities) and serial numbers.

RELATED CONTENTS:
	Samsung halts sale, exchange of Note 7 over safety fears
	Samsung requests tax exemption for recalled Galaxy Note 7 devices
	Replacement Samsung Note 7 phone emits smoke on US plane - family
	Samsung to resume S Korea sales of new Note 7 phones
	Chinese user says new Samsung Note 7 exploded
	One million Samsung smartphones in US recall
	Samsung to cap Note 7 battery charge in South Korea via software update
	Samsung Galaxy Note 7 banned on planes
	Qantas grounds Samsung Note 7 after explosions recall
	Samsung issues recall for Galaxy Note 7 after battery fires