- Title: Samsung shares close down after Galaxy Note 7 production halt
- Date: 10th October 2016
- Summary: SEOUL, SOUTH KOREA (FILE - AUGUST 11, 2016) (REUTERS) VARIOUS OF SAMSUNG GALAXY NOTE S7 ON DISPLAY MAN LOOKING AT SAMSUNG GALAXY NOTE S7 MAN TOUCHING SCREEN OF SAMSUNG GALAXY NOTE S7 WITH STYLUS PEN VARIOUS OF SAMSUNG GALAXY NOTE S7 ON WIRELESS CHARGER SEOUL, SOUTH KOREA (FILE - 2016) (REUTERS) EXTERIOR OF SAMSUNG ELECTRONICS BUILDING MAIN ENTRANCE INTO SAMSUNG ELECTRONICS BUILDING / PEOPLE WALKING OUT OF BUILDING SIGN READING (English and Korean): "SAMSUNG ELECTRONICS"
- Embargoed: 25th October 2016 09:11
- Keywords: South Korea Samsung phones smartphone Galaxy Note production shares
- Location: SEOUL, SOUTH KOREA
- City: SEOUL, SOUTH KOREA
- Country: South Korea
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA00353F8LZ9
- Aspect Ratio: 16:9
- Story Text:Shares of Samsung Electronics Co Ltd closed down on Monday (October 10) after the company suspended production of its flagship Galaxy Note 7 smartphones, following reports of fires in replacement devices added to the tech giant's worst ever recall crisis.
Samsung shares, which have rebounded after an initial sell-off on the recall, closed down 1.5 percent, compared with a 0.2 percent rise for the broader market.
Fires in phones that were meant to replace devices that had been recalled because of their propensity to explode would be a disaster for the world's largest smartphone maker, suggesting it has failed to fix a problem that has already hurt its brand and threatens to derail a recovery in its mobile business.
In a regulatory filing, Samsung said it was "adjusting" shipments of Note 7s to allow for inspections and stronger quality control due to some devices catching fire.
It did not comment on the production halt or the cause of the fires, while the source - who declined to be identified because they were not authorised to speak to the media - did not explain whether specific problems had been identified or when production was halted.
Samsung told Reuters it was investigating reports of "heat damage issues" and would take immediate action to fix any problems in line with measures approved by the U.S. Consumer Product Safety Commission.
On September 2, Samsung announced a global recall of 2.5 million Note 7s due to faulty batteries which caused some of the phones to catch fire.
- Copyright Holder: FILE REUTERS (CAN SELL)
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