The Samsung Galaxy Note 7 recall is turning out to be a very big deal. Since Friday, Samsung’s stock has dropped 7.6%, which is the biggest drop Samsung has seen since 2012. The loss in market value amounts to a whopping $19 billion. Ouch.
The problem isn’t going away, either. People are still using the Note 7 and still getting hurt. Despite the fact that Samsung has repeatedly pleaded with customers to power off and return the devices. The fault may lie in the hands of customers for not listening, but every headline is a nail in the coffin for the Note 7. Samsung is rushing to stock new models, but will anyone want them?
The Note 7 isn’t allowed on planes and the Consumer Product Safety Commission has banned sales altogether. Even when Samsung does get safe models available for purchase, it will be interesting to see if people trust them. Investors are realizing that this situation could have serious long-term effects for Samsung. It will be interesting to see how people accept the replacement Note 7 and future Galaxy phones.