Note 7 saga wipes out $17 billion from Samsung's market cap

[ad_1]

Samsung just issued in Korea today the same statement that it did for the US yesterday — that it is halting all Note 7 sales and replacements until the relevant consumer safety bodies in the US, Korea and Taiwan have finished their investigation into the replacement units catching fire. Asked if/when will sales (and possibly production) resume, a Samsung spokeswoman replied that there is nothing decided yet on future plans about the Note 7 production.

Meanwhile, the statement that Samsung posted today in Korea, wiped out more than $17 billion of market cap from the company’s stock, which was down more than 8% when the stock exchange closed. Ouch. Of course, market cap is not like solid revenue or profit figures, but this virtual sum is pretty large even for a conglomerate like Samsung. The company should be thankful that the battery fiasco isn’t happening with its bread-and-butter Galaxy S line, but rather with the niche Note market, as the repercussions then would have been even more disastrous.

[ad_2]

Source link