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Samsung plummets $26B in market value following Galaxy Note 7 recall

Following the announcement that it’s recalling all Galaxy Note 7 devices because of explosive battery issues, Samsung has lost $26 billion in dollar value.

Shares of the company dropped 6.9 percent between the Korea Exchange’s close on Friday and Monday, according to financial data company Factset. Specifically, the company lost 28 trillion won (about $26 billion) off its total market cap.

Even with increased competition in most marks from Chinese brands like Huawei and Xiaomi, though neither company has a significant presence in Canada, favorable reviews for the Galaxy S7 and Note 7 resulted in impressive operating profit and robust sales for the company.

“The Samsung Note7 smartphone battery has the potential to overheat and burn, posing a potential fire hazard,” says the Health Canada posting, “Health Canada and Samsung Canada have received one report of a phone battery overheating.  No injuries have been reported. Samsung has received over 70 reported cases in the United States.”

Over 21,953 Note 7s have been sold in Canada. The company’s product exchange program launched on September 7th via CanadaNote7exchange.expertinquiry.com or 1-800-517-3507.

Related: Samsung officially recalls Galaxy Note 7 devices

[source]Quartz[/source]

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