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Samsung's $7 billion dollar bang

Thursday, September 01, 2016 - 01:09

Samsung's market cap take a $7 billion dollar hit on reports that exploding batteries forced the delay of shipments of Galaxy Note 7 smartphones. Ryan Brooks reports.

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Exploding batteries, shipping delays and shares at a two-week low. This wasn't how Samsung wanted to ride out the second half of the year. The company had been cresting a wave of solid smartphone sales: Profits up nearly 60 percent as the Galaxy S7 flew off the shelves... after production problems torpedoed the launch of the previous model a year earlier. Now, though, it seems similar issues are back to haunt the company... with reports that batteries in the new Galaxy Note 7 phone-tablet are blowing up. Samsung says it needs to run further tests... forcing it to halt Note 7 shipments to South Korea's top three mobile carriers on Thursday... A big blow for a product where demand was outstripping supply by far. It's all coming at the worst possible time for Samsung... Its number one rival Apple is expected to unveil the new iPhone next week... and the Note 7 was meant to be Samsung's main buffer against that momentum. If the South Korean company can't work out how to keep its main contender in the ring... ...then it could find itself once again on the ropes for a disappointing autumn.

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Samsung's $7 billion dollar bang

Thursday, September 01, 2016 - 01:09