By now pretty much everyone has heard that Samsung has officially recalled the Galaxy Note 7 following multiple reports of the phone exploding. Safe to say that confidence in the company has been shaken, but it appears that not just customers are shaken, by so are Samsung’s investors.
According to a report from Reuters, following the recall, Samsung’s share prices have fallen to their lowest level in nearly two months. The report claims that the prices have fallen so much that it has wiped out around $14.3 billion of Samsung’s market capitalization. This is on top of the $1 billion that it is said to cost Samsung to recall their phones.
IBK Securities analyst Lee Seung-woo said, “Some said initially the Galaxy Note 7 could be the best smartphone ever, but now it’s possible the phone will go down as the worst ever.” It is true that initial impressions of the handset, including ours, were excellent. We had even rated the phone a 10/10, but safe to say that this incident will forever marre what could have been Samsung’s best product.
Of course once Samsung gets this sorted out, we can only imagine that customers will slowly but surely return, but whether or not they will return to their initial levels remains to be seen. In the meantime has this recall put you off from buying a Note 7? Or will you still go ahead and purchase one once Samsung has released the replacement units?