Samsung Corp halted the sales of Galaxy Note 7

Samsung Corp halted the sales of Galaxy Note 7

Samsung Electronics Co Ltd (KS:005930) recommends the owners of Note 7 stop using their phones (turn them off) while the investigation on smoke reports still conducted. The company directed this restriction to all global sellers of Samsung products.
On Monday major U.S. and Australian sellers suspended the operations with Samsung Note 7 (including exchanges). US aviation representatives started to ban passengers with smartphones after the fire reports and information about smoke from the device, which was already exchanged by Samsung. Last week flying crew was forced to evacuate passengers from the U.S. plane because of that.
Some analysts expect Samsung to recall all flagship smartphones in a newly produced Note 7 series. For now, the corporation is offering consumers a refund or exchange on different company products. Unidentified insider mentioned that corporation also stopped the production of Note 7s for some period. However, it is unclear if the production level is going to be restored and when it can happen.
Investors took away $13.2 billion equivalent from Samsung Corp market value during Tuesday mid-day trade. The situation dropped the corporation shares down by 7 percent 03:25 GMT, making them reach their lowest rating for two weeks’ period.
In comparison, Apple shares went up for their highest rating in 10 months on Monday while the market players expected the opponent to have some benefits from the situation with the Korean smartphone production company.
Representatives of Verizon Communications Inc (N: VZ), the largest U.S. wireless communication service provider, commented that the situation could have a negative effect on the marketing of new Samsung flagship during the holiday sells.