Stock of the South Korean technology giant plunged over eight percent at the close of trade in Seoul, washing billions off its value. The recall of the handset may cost the company as much as $17 billion, which is what Samsung expected to earn during its product cycle.
Last month, Samsung announced the recall of 2.5 million Galaxy Note 7 smartphones after reports of devices overheating and catching fire appeared worldwide. The company blames a faulty battery while awaiting the results of an investigation by US safety regulators.
Experts had expected the firm to restart global Note 7 sales in the fourth quarter. However, Samsung announced permanent halting sales of the handset.
The step has killed the Note 7 brand name, according Edward Snyder, managing director of Charter Equity Research.
“By the time they fix the problem they have to go through recertification and requalification and by the time that happens, they're going up against the (Galaxy) S8 launch,” he said, as quoted by Reuters.
sources : https://www.rt.com
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