Samsung’s shares drop after company warns Galaxy Note 7 users to turn off their smartphones
Samsung Electronics Co. and US Consumer Product Safety Commission (CPSC) recently issued a warning to the users of its latest Galaxy Note flagship smartphone - Galaxy Note 7 - to immediately turn off their handsets and stop charging them.
The warning by Samsung and CPSC to Galaxy Note 7 users to stop using their devices has come after reports that the batteries of nearly three dozen Galaxy Note 7 handsets - launched barely three weeks back - had exploded or caught fire while being charged. The company has already announced a voluntary, global recall of all the 2.5 million Galaxy Note 7 units it has shipped so far, as well as a device replacement program.
As a result of the warning that Galaxy Note 7 users should not use their devices because of potential risk of explosion of batteries, Samsung's shares witnessed the biggest drop in nearly three weeks.
The shares of Samsung Electronics recorded the biggest intraday drop since August 24, by plunging as much as 5.5 percent. Including a 3.9 percent drop on Friday, the market value of Samsung has fallen by nearly $19 billion.
Meanwhile, the shares of Samsung's battery-manufacturing affiliate Samsung SDI witnessed a 5.9 percent decline to 96,500 won, the lowest on an intraday basis in the last five-month period.
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