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Note 7 collapse triggers slide of Samsung Electronics shares

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Shares of Samsung Electronics Co Ltd <005930.KS> opened weaker on Wednesday, touching a one-month low amid worries about the firm’s prospects after it scrapped its flagship Galaxy Note 7 smartphones due to continuing safety risks.

The world’s top smartphone maker on Tuesday said it permanently halted sales of the beleaguered flagship smartphone in what could be one of the costliest product safety failures in tech history.

Samsung announced the recall of 2.5 million Note 7s in early September following reports of the phones catching fire. The firm seemed to have resolved the situation by using different batteries, until the emergence of fresh reports of fires in these new phones.

Samsung shares were down 2.9 percent in early Wednesday trade after touching a one-month low of 1.494 million won (£1,091.97), reflecting concerns about fourth-quarter earnings as well as the potential long-term impact on the firm’s smartphone business.

Paul

The author Paul