Samsung shares slide on Galaxy Note 7 recall

samsung s7

 

Samsung shares fell sharply on Monday, hitting a two-month low after the firm urged users not to use its flagship Note 7 phone and exchange the device due to fears it might catch fire.

The South Korean company’s shares dropped more than 6% on Monday.

Samsung recalled 2.5 million phones last week after reports of the device exploding during or after charging.

Airline passengers were warned by US authorities not to use or charge the phones while on board.

Aviation authorities in several other countries and individual airlines have since then also banned the use of the devices on their flights.

The company had already said it would replace all devices that customers would hand in.

According to Samsung, battery problems were behind the phones catching fire, but the firm said it was difficult to work out which phones were affected among those sold.

The phone was launched last month and has been otherwise generally well-received by consumers and critics

 

Source: BBC

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