Samsung's shares plummet amid fiery Galaxy Note7 fiasco

As the debacle over Samsung's latest Galaxy Note flagship deepens, with recalls being made worldwide, the issue has started taking a toll on the company's shares.

Samsung's shares fell to the lowest level in nearly two months, with its investors pulling out over 15.9 trillion won, or equal to $14.3 billion off of the Korean tech giant's market capitalization.

The numbers started slipping after the company announced a wide recall of the handset last September 2, over worries of the risk of fire, or even worse, explosions. This prompted numerous airline companies and the US Federal Aviation Administration to ban the device. Even the US government has announced a similar move, asking owners to stop using the device and turn them off.

Analysts are predicting that the growing issue could create a lasting impact on Samsung's brand image, which unfortunately happened in the midst of rival Apple's launch of its newest iPhones. It was also envisioned by Samsung's security analyst that the recall process could cost the company hundreds of millions of dollars in operating profits just to be able to clean up the mess it created.

“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. “Long-term, it will cost Samsung significant marketing spending to ensure the next products can overcome this issue.”

At this point, we highly suggest to our readers who own a Galaxy Note7 to stop using the device, and have it returned, in order to prevent any more dangers that could happen by just simply possessing it.

Source: TIME

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