Samsung share price dives after Galaxy Note 7 phone recall

Sep 18, 2016, 01:37

Meanwhile, AirAsia said all guests on AirAsia and AirAsia X who carry a Samsung Galaxy Note 7 device must turn it off until disembarkation from the plane.

Three other airlines - Singapore Airlines, Australia's Qantas, and Virgin Australia - have instituted bans on the device as well.

"We will voluntarily replace your Galaxy Note 7 device with a new one", the statement noted.

Notedly, ATL also supplies batteries for Apple's iPhone series, which means Samsung could face supply restraint if demand soars for the latest iPhone 7 and iPhone 7 Plus.

If this reddit post is anything to go by, it looks like Samsung's French subsidiary will remotely deactivate all Galaxy Note 7 units that aren't returned to the manufacturer by Friday, September 30.

Samsung has seen £11 billion wiped off its market value after recalling its Note 7 smartphone due to the risk of it bursting into flames.

"While there have been only a small number of reported incidents globally, Samsung is committed to prioritising the safety of customers".

The sharp fall on the Korean stock market comes after United States aviation authorities warned travellers not to turn on or charge the Note 7 during flights or store them in checked bags. The Galaxy Note 7 unit must also not be stowed in any checked baggage, the budget carrier said.

Samsung said new Note7 replacement devices will be issued to exchange program participants upon completion of the CPSC (US Consumer Product Safety Commission) process. "Even if Samsung puts Note 7s with new batteries in the market it won't sell as well as it had initially", HMC Investment analyst Greg Roh said.

While on-board the aircraft, the passengers are requested to turn off and not charge the device.

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