- Title: Samsung shares close down after Galaxy Note 7 production halt
- Date: 10th October 2016
- Summary: SEOUL, SOUTH KOREA (OCTOBER 10, 2016) (REUTERS) EXTERIOR OF KOREA EXCHANGE (KRX) LETTER READING (English): "KRX" INTERIOR OF DEALING ROOM / COMPUTER SCREEN SHOWING STOCK PRICE OF SAMSUNG ELECTRONICS COMPUTER SCREEN SHOWING STOCK PRICE OF SAMSUNG ELECTRONICS ELECTRONIC BOARD SHOWING STOCK PRICES VARIOUS OF ELECTRONIC BOARD SHOWING STOCK PRICE OF SAMSUNG ELECTRONICS DATA ANALYSIS, RETRIEVAL AND TRANSFER SYSTEM (DART) WEB PAGE SHOWING PUBLIC ANNOUNCEMENT OF SAMSUNG ELECTRONICS (Korean): "OFFICIAL NOTICE ADDRESSING MEDIA REPORTS ABOUT A HALT IN PRODUCTION OF SAMSUNG GALAXY NOTE 7, SAMSUNG ELECTRONICS CO LTD"
- 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: LVA00153F8LZ9
- 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.
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