Samsung, a leading smartphone and home appliance company has witnessed a sharp decline in the value of its shares following hiccups with the shipment of its latest smartphone.
Samsung Shares Fall Over Smartphone Quality Issues
Samsung has not provided any details about its decision to delay payment.
In a statement, the company only announced that it would delay the shipment of Galaxy Note 7 for quality assurance inspections.
Reports are emerging from the US and South Korea of the Galaxy Note 7 exploding after or during charging.
However, it is still unclear whether the delay is due to these emerging reports.
So far, customers have posted pictures and videos online showing charred Samsung handsets.
In Seoul, Samsung shares fell by 3.5% in trading hours before partially recovering to close at 2% down at the end of the trade day.
Samsung SDI, the company’s sister company told Reuters that it was supplying Galaxy Note 7 batteries but it had not yet received information about the batteries exploding.
A US-based customer uploaded a YouTube video showing a Galaxy Note with a charred rubber casing and a screen that was thoroughly damaged.
The user, Ariel Gonzalez, said the handset had caught fire after charging the phone with the official Samsung charger, just a fortnight after buying the phone.
Other than Mr. Gonzalez, there have been at least five other claims online of exploding Samsung phones, according to news reports by the Korean agency, Yonhap News.
On September 7, Samsung’s primary competitor, Apple is expected to launch its latest iPhone.
Roberta Cozza, research director at Gartner said, “Apple’ s upcoming announcement of its latest smartphone could not be a worse timing for Samsung.”
She added, “Samsung was making headway with the Galaxy Note 7 following the Galaxy S7 earlier in the year. In case it is planning on a recall, it would need to do so fast, given that such an issue can damage the brand.”
Launched earlier this month, the Galaxy Note 7 has been well received globally.