Samsung’s troubles with the Note 7 don’t seem to be coming to an end as the company is suffering from heavy losses due to the bans and warnings on the smartphone. The Samsung electronics Co. shares went down by 7% to close at 1.46 million won ($1,318). This was the company’s largest drop this year. The loss amounted to 15 trillion won of the company’s total value. This is the biggest share decline since 2008. This loss of shares can be blamed on the US regulators joining in to warn the users against charging the phone. The regulators have also asked the users to switch off their phones. This resulted in the company facing massive losses in the market. According to a report by Bloomberg, Samsung lost $22 billion in market value over the last two days.
Various airlines and aviation authorities have also asked their passengers to stop using Galaxy Note 7 while travelling. It is feared that these phones could also be banned altogether in flights. Samsung had earlier on September 2, voluntarily asked their users to shut down their Note 7s immediately and asked them to return the smartphones as soon as possible.
The Company said that it had sold 2.5 million Galaxy Note 7s, that turned out to be defective with a highly combustible battery and need to be replaced. Samsung had launched their Galaxy Note 7 weeks before the launch of the Apple iPhone 7, in an attempt to have one over the Cupertino giant. But the plan backfired horribly when reports emerged that the batteries in these smartphones got set on fire or exploded while charging, leading to a major security concern. This made Samsung stop the sales of the Note 7 in the US markets indefinitely push back the launches in Europe among other reasons.