Apple stock hit its highest price of this year on Monday as Samsung’s exploding phone saga worsened.
In 2012, Samsung released the first version of its Galaxy Note phone, a device that boasted a 5.3-inch display and was lighter and thinner than Dell’s brick.
A 13-year-old Minnesota girl also had her Note7 begin to melt in her hands.
Mark Newman, a Bernstein analyst who covers Samsung, said the battery explanation did not add up.
“In the worst case scenario, the United States could conclude the product is fundamentally flawed and ban sales of the device”, said Song Myung-sub, an analyst at HI Investment Securities, as quoted by Reuters.
“We are working with relevant regulatory bodies to investigate the recently reported cases involving the Galaxy Note7”, reads a statement from the South Korean company. In Seoul, shares of Samsung dropped another 8 percent on Tuesday, wiping out $17 billion in the company’s market value.
The Galaxy Note7, which was briefly hailed as the most innovative handset in history with its waterproofing and iris-scanning security function, is on the verge of being discontinued.
“Customer safety is Oculus’ top priority”, reads a message now presented to Note 7 users. The company stopped selling the device after finding that even the supposedly safer replacements it was providing for recalled Note 7 phones were catching fire. Damage to the Samsung brand will actually be quite limited and should fade within the next few months, particularly if no other problems show up. The company blames a faulty battery while awaiting the results of an investigation by USA safety regulators.
Initially, Samsung had said in September that the Note 7s sold in China would not be affected because their batteries came from a different supplier, ATL. The overheating was linked to problems with batteries that caused some phones to catch fire. “A comprehensive order will be issued shortly”, said the official. The update was first reported on Reddit and later confirmed by Android Central. Samsung is now asking wireless carriers and retail partners to cease sales and exchanges, opening the door for rival handset makers.
Industry insiders are encouraging it to retire the model for good.
“I’m going to turn it in because I don’t want to have to be nervous anymore”, she said. “If they don’t get back soon, it provides a vacuum for others to creep in”. “There is speculation that Samsung may bring forward the launch of the S8 to overcome the recall crisis and regain consumer confidence”. They might call for a little more testing and quality control before pushing a phone to market.
Negative comments on the Galaxy Note7 dominated the foreign press.
If you purchased your phone online from one of the major carriers, you may be required to take your phone to a company-controlled store, not a franchise. It never even produced a Galaxy Note 6-it skipped straight from the 5 to the 7, perhaps in part because it feared that the Note 6 would sound like it was a generation behind Apple’s iPhone 7.