Phones exploding in kids' hands, shares tanking – but it's not all good news at Samsung
South Korean giant sees $16bn figuratively do what the Note 7 literally does
Samsung is continuing to take a beating in the market as it staggers from the global recall of its Galaxy Note 7 handset.
The Korean consumer electronics giant saw its stock price plummet 6.98 per cent on Monday to 1.46m Korean won per share.
This resulted in roughly $15.9bn of value trimmed from Samsung's market cap on the day. Dating back to last Friday, Samsung has shed more than $25bn from its estimated market cap value.
The plummeting price comes as Samsung is urging customers who purchased a Galaxy Note 7 phablet to stop using the device immediately over fears that the handset's battery pack could catch fire during charging or while in use.
Such issues have been reported in multiple cases, leading to serious injury and damage to property. Over the weekend, a six-year-old Brooklyn boy reportedly suffered burns after his Galaxy Note 7 smartphone detonated in his hands.
Samsung issued a recall of the device earlier this month, prior to recommending that everyone stop using the phones altogether. Samsung says the new replacement models will not be as prone to spontaneously bursting into flames.
Meanwhile, Samsung is also moving to end uncertainty about the future of its leadership team by naming a successor to board of directors member Sang-Hoon Lee. Samsung says that his son Jay Y Lee will take over the role from his father, who suffered a serious heart attack in 2014. Sang-Hoon Lee will stay on as CFO.
The announcement was slipped out, along with the revelation that Samsung would be selling its printer business unit to HP Inc. ®