Samsung’s shares collapsed after the news about problems with the Galaxy Note 7


The price of shares of the technology giant Samsung Electronics hit a two-week low on Thursday amid worries about the financial results from the sales of mobile devices after yesterday the company announced that it postpones the sale of its premium smartphone Galaxy Note 7 amid signals for exploded batteries , transmits Reuters.

The price of the shares fell by nearly 3% yesterday.

This happened after the company announced that it postpones sales because of tests for quality control. Furthermore, it announced that sales of Galaxy Note 7 in the top three mobile operators in South Korea have been suspended, which reduced investors’ hopes for a strong financial performance of the mobile unit in the second half.

If confirmed, quality problems can cause a serious blow to the largest smartphone manufacturer in the world. The company relied on Galaxy Note 7 to keep the momentum of sales in a time when it is expected Apple to present its new phones. The big event of the manufacturer of the iPhone will be held on September 7.

The South Korean company did not reveal details about the what potential problems it’s testing its devices for and whether sales in other countries are affected. The South Korean mobile operators affected by this case are SK Telecom, KT, and LG Uplus.

A user posted a photo of their Galaxy Note 7 in a South Korean website called Ppomppu, stating that his phone has ignited while it was charging. The South Korean media wrote about a few such incidents.

Samsung SDI said it is one of the suppliers of batteries for Galaxy Note 7 and has not received any information that the batteries do not function properly.

The phone was launched in South Korea and other markets on August 19 at a price of 988,900 won (887.23 dollars).

About the Author

Martina T.
Martina Terzieva is a content writer for Business News Feeds. She likes to dig deep, find the most interesting things that happen and share them with the world. Besides news, Martina writes poetry, she's also a musician and a sound engineer.

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