Shares of Samsung closed up by 0.63% despite Galaxy Note 7 recall
Samsung said,"We are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers’ safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7."
Shares of Samsung Electronics re-couped its previous losses on Friday tradings, on recalling its Galaxy Note 7 due to battery failure.
The stock of the South Korea's Samsung closed above 0.63% to 1,597,000 KRW today.
Due to delay in announcement on Thursday, Investors dumped Samsung shares, stripping about $7 billion from the firm`s market value.
After conducting a thorough investigation, Samsung found a battery cell issue in Note 7.
As of September 1, there have been 35 cases with the same issue reported globally.
In this regard, Samsung said,"We are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers’ safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7."
To maintain its efficiency, over the coming weeks, Samsung will voluntarily replace the new version of Note 7 from the exsting one for customers who have already purchased the Note 7 device.
Samsung said,"We acknowledge the inconvenience this may cause in the market but this is to ensure that Samsung continues to deliver the highest quality products to our customers. We are working closely with our partners to ensure the replacement experience is as convenient and efficient as possible."
Credit Suisse said a recall or major shipment delays could wipe 1.5 trillion won ($1.34 billion) from Samsung`s 2016 operating profit estimate of 30.2 trillion won in an "absolute worst case" scenario, a Reuters report.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.