Due to the recent battery explosion fiasco of the Galaxy Note 7, Samsung Electronic might lose around $5.3 billion. Earlier this year, the company claimed that the aforementioned product is one of the most perfect smartphones ever! And their stock value peaked at its highest. However the explosions flipped that around.
Several cases of Note 7 exploding flooded social media. At first people thought it was a hoax, but when the frequency of the fiasco increased, people took it seriously. The company had to ultimately recall around 2.5 billion units worldwide. Many authorities and airlines were affected by this disaster.
Nevertheless, Samsung apologized and started taking safety measures for their customers. The company had cleared the battery of all faults and replaced the units with phones which would not cause any problem for the customers.
This is a big hit for Samsung as their rival, Apple, are expected by some analysts to get their stocks as high as $126.45 by 2018. The Note 7 has caused Samsung’s shares to be wiped out, which were supposedly valued at $18 billion. They have also lost around $25 billion in market value.
Some still have faith in the South Korean giant. Currently they are working on their next product. And they are expected to be in the market by 2017 February. They might make a good comeback, if they are cautious and plays their cards right.