Initially, Samsung’s latest flagship phablet, the Samsung Galaxy Note 7 was a big hit, with strong sales which required the South Korean company to ramp up production in order to fill the amount of orders. However, everything went downhill when reports from around the world started to emerge that there were units which exploded while being charged. This prompted Samsung to launch a massive recall of all affected units. On top of this, the US Federal Aviation Administration, or better known as the FAA, issued a warning which advised Galaxy Note 7 users to avoid charging or using the phone on flights.
While Samsung’s stock has already been declining since the recall was issued, to add salt to the wound, the FAA warning did not help much either. Since the issued warning, Samsung’s stock has taken a beating and has lost a massive $10 billion from its market value. Samsung’s stocked closed at 1.575 million Won ($1,432) in Seoul on Friday. This represents a significant decrease of 3.9 percent from the previous day’s close. The company’s stock didn’t take such a severe loss before this even though it was under huge pressure as investors were pleased with the steps Samsung was taking in order to rectify the issue. At the moment, Samsung is in the midst of replacing all affected Galaxy Note 7 units and has started to ship out new replacement units to certain retailers, though most retailers and carriers will only start to receive their units in a week or so.
If you are a Galaxy Note 7 user, Samsung themselves advises you to immediately turn off the device and hand it in at your respective point of purchase and you will be able to pick up a loan device from the Samsung Galaxy J series in the meantime while waiting for your replacement unit. The FAA isn’t the only one which has warned against the usage of the Galaxy Note 7 on flights, as major airlines from all over the world have also done the same, including three Australian airlines and Malaysia Airlines. The Indian government has also banned the Galaxy Note 7 from being placed in check-in luggage.