Last month, Samsung launched the Galaxy Note 7, an Android smartphone with a best-in-class screen, cutting-edge camera, and quirky features like an iris scanner. Unfortunately, the phone’s battery came with an unwanted feature of its own: the ability to catch fire at random.
After the Galaxy Note 7’s release, news of people being burned by their phones isn’t sitting particularly well with consumers, as no one is running out to buy a phone bomb. Yet even though Samsung is recalling millions of phones and government agencies are telling existing Galaxy Note 7 owners to avoid using their devices at all costs, one would think that a major company like Samsung would still be doing pretty okay in the grand scheme of things, right?
Earlier today, the Korean company lost $14 billion from their market cap. This means that every share of Samsung stock that was worth $1422.34 is now worth just $1323, a 7% decline in a day and the company’s biggest single-day decline ever.
While today’s losses were truly epic, they’re part of a downward trend since news first broke of problems with the Galaxy Note 7. Yet that leaves us to wonder: how did things get so bad in the first place?
People first started reporting issues with the Samsung Galaxy Note 7 shortly after its August 19 release. Yet no one really knew the scope of the problems…
Laugh now…while you still can.
Soon, word got out that Samsung’s new phones ran a little hot.
Samsung announced it would delay shipments of their phone to test “product quality.”
This eventually turned into a voluntary recall due to exploding batteries. (Yes, exploding.)
The United States Consumer Product Commission told Galaxy Note 7 owners to stop using their phones.
The FAA advised travellers to not use their phones on planes because they were basically weapons anyway.
Samsung sent out more warnings about these dangerous devices, but the incidents kept piling up.
A child in Brooklyn was badly burned from an exploding Galaxy Note 7, and a 23-year-old man filed a lawsuit after suffering burns from a different Samsung model.
While Samsung works out the kinks with the Galaxy Note 7 and keeps losing value on the market, Apple is set to launch their hopefully-less-volatile iPhone 7 at the end of the week.
They’ll probably convert a few Samsung customers who are actively looking for a safer phone.
It might sound crazy, but a $14 billion loss on the market isn’t the end of the world for Samsung. They’re still one of the top electronics manufacturers in the world, and they make a whole lot more than just phones and tablets. Let’s hope the only thing that catches fire are their stove tops!
Share this with your Samsung-owning friends below, and let them know they’re carrying a weapon.