Samsung Lost more than $25 Billion of Market share after Galaxy Note 7 Recall
The most anticipated release of Samsung Galaxy Note 7 fell under a dark thunderous cloud after the reports of battery explosions and meltdowns. The Galaxy Note 7 user’s started complaining about battery explosions while charging the device, the consumer complaints started popping up on the Social media and mainstream medias within a week of it’s release, due to which Samsung eventually ended up recalling it’s Note 7 devices, and the distribution stopped. As a result, Samsung lost more than $25 Billion of Market share.
Samsung was having a great year, thanks to the S7 and S7 Edge, enticing investors to toss their money into the pool. Unfortunately, the rest of 2016 hasn’t been going according to Samsung’s forecast. The Korean chaebol has lost a whopping $26 billion (with a B) of its market value since it announced the Galaxy Note 7 recall, according to financial data provider Factset. Its shares apparently dropped 6.9 percent between the Korean Exchange’s close on Friday (September 9th) and Monday, and its stock is currently priced at a bit above $1,300. That’s the lowest it’s been in months, although as you can see in the graph below the fold, the company has recovered a bit since yesterday.
Since around 2.5 million devices were shipped before the recall started, it might have alarmed investors and made them question Samsung’s future in the mobile business. Perhaps in an effort to assuage their fears, the company announced on Monday that Vice Chairman Jay Y. Lee will officially take over his father’s role as the company’s chief.
So, basically there stock price also plummeted to a great extent. And it looks like it will keep going down for few more sessions before the company take complete control of the situation.
In SEOUL, Korea, Samsung is planning to launch a software which will prevent the device from recharging above 60%. So, basically the Galaxy Note 7 should not be charged above 60% in order to stop itself from exploding.
“Galaxy Note 7 recall: Samsung to release software update to prevent phones from fully charging” by globalnews.ca
Samsung plans to issue a software update for its recalled Galaxy Note 7 smartphones that will prevent them from overheating by limiting battery recharges to under 60 per cent.
The front page of the Seoul Shinmun, a South Korean daily newspaper, carries a Samsung advertisement announcing the software update plan for any users of the Note 7 who may be disregarding its recall notice and continuing to use the smartphone.
“It is a measure to put consumer safety first but we apologize for causing inconvenience,” Samsung Electronics said. The update for South Korean users will start at 2 a.m. on Sept. 20, it said.
However, over the weekend, Samsung urged consumers worldwide to stop using Galaxy Note 7 smartphones immediately and exchange them as soon as possible, amid more reports of the phones catching fire. Click here to Read More…
It means they are literally asking the consumers to not fully charge the device, to just keep the battery below 60%.
It looks like Samsung’s Galaxy Note 7 problems are just keep getting worse:
Social Media is taking a dig on Samsung Galaxy Note 7 battery explosions:
Does it reminds you of one of those Zombie movies?
Source CBCNews: Samsung’s quick fix for Galaxy Note 7 is no full recharge
The front page of the Seoul Shinmun, a South Korean newspaper, carried a Samsung advertisement on Tuesday announcing the software update for any users of the Note 7 who may be disregarding its recall notice and continuing to use the smartphone.
“It is a measure to put consumer safety first but we apologize for causing inconvenience,” the advertisement by Samsung Electronics said. The update for South Korean users will start Sept. 20, it said.
South Korean media earlier reported the software update plan, citing Samsung.
It was not clear when the update may be issued overseas. Also unclear was whether it will be forced on existing Note 7 phones regardless of user consent. Yonhap News Agency reported that Samsung is in talks with mobile carriers to deliver the same update to keep battery power at 60 per cent or below at all times.
2.5 million devices recalled
Samsung plans to begin issuing new Note 7s with batteries it says will not be prone to overheating starting Sept. 19 in South Korea. It recalled 2.5 million of the devices just two weeks after their launch after dozens of cases in which batteries exploded or caught fire. Samsung says the problem stems from a manufacturing glitch in the batteries.
Samsung is the world’s largest smartphone maker, and analysts said the recall may leave a larger impact on its brand than earlier estimated. Aviation regulators and airlines have deemed the Note 7 a flight hazard and the U.S. Consumer Product Safety Commission is considering an official product recall. Click here to read the entire article!
— Popular Mechanics (@PopMech) September 8, 2016
— Sam (@comedysam) September 3, 2016