Samsung shares are not on fire after flaming recall

Lynsey Barber
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Samsung Celebrates The Unveiling Of The Galaxy S6 edge+ And Galaxy Note5
The Galaxy Note 7 has been recalled (Source: Getty)

Shares in Samsung have unsurprisingly stumbled after the smartphone maker was forced to recall its recently launched flagship Galaxy Note 7 due to a fiery battery situation.

The South Korean tech giant was forced to pull the device from the shelves after reports of it exploding and on Friday said it had identified 35 such incidents.

Read more: Samsung Galaxy Note 7: US urges consumers to stop using volatile devices

Stock slid more than six per cent and around 15.9 trillion won (£10.77bn) was wiped from its market capitalisation, its biggest one day drop in four years and hitting a two month low.

US regulators have issued a warning while a string of airlines have banned the phone from flights.

The latest woes for Samsung come amid a dog-eat-dog smartphone market that's slowing and as rival Apple launches its latest iPhone 7.

Read more: Samsung recalls 'exploding' Galaxy Note 7 smartphones

It has sold 2.5m of the devices in 10 countries around the world, lauding eye-scanning technology and its curved edge screen. Its predecessor, the smaller Galaxy S7 helped boost Samsung after tearing ahead of Apple to launch its flagship to market first.

The hiccup with the Note however could undo all that with analysts suggesting a longer term impact to its reputation and the missed window of opportunity to steal a march on Apple, than merely a one off cost of the recall.

Apple's iPhone 7 is already available for pre-order and will go on sale this Friday (16 September).

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