Samsung in real distress as the number of Note 7 explosions increase drastically
Samsung quoted, “Based on our investigation, we tend to learned that there was a problem with the battery cell. an overheating of the battery cell occurred when the anode-to-cathode came into contact that is a terribly rare manufacturing method error,” in there FAQs document on its United Kingdom web site. This primarily means that 2 sections of the battery that aren’t supposed to come in contact, came in contact with one another. The batteries accompany separators that guarantee anode and cathode — through which current flows — don’t come in contact. Apparently, this wasn’t done properly throughout the manufacturing method. one of the speculations is that separators might have malfunctioned inflicting these anodes and cathodes to come into contact, therefore incidents of catching fire or explosion whereas charging the Galaxy Note Seven.
Because of the same , Samsung had to call for the recall of all devices being used all over the world Samsung has officially said to deactivate all Note 7 devices if not exchanged, under which they mentioned that all note 7 devices will be deactivated by September 30, exchanged for the same reason, so that there remains no faulty note 7, in the market and if possibly there is no exchange of the phone, the phone could become one of the most expensive paper weight in the market.
Samsung’s stock saw its biggest in a day drop since 2012, of 7.6 percent. When the 3.9 % drop from weekday is taken under consideration, the loss in market price amounts to a staggering $19 billion.
This is the largest drop for Samsung since it declared the large Note seven recall at the start of the month. Investors seemed to take the news without becoming upset at first (Samsung’s shares truly grew within the days following the recall announcement), however the gravity of the case is finally setting in .
In the midst of all the drama rival companies are sure to use this situation to get one up on Samsung, and this situation is sure to hurt their credibility for some time and all this loss for something that was very much avoidable is just a chain of stupid mistakes.