Samsung shares fall on recall costs
SHARES of tech giant Samsung Electronics fell to their lowest level in nearly two months yesterday, hurt by worries the fallout from a recall of its Galaxy Note 7 smartphone may deal a bigger blow than anticipated.
Investors have wiped off 13 trillion won (S$16 billion) from Samsung's market capitalisation as of early yesterday, with the firm's common shares down 5.3 per cent as of 0058 GMT (8.58am Singapore time), underperforming a 1.4 per cent fall for the broader market and touching their lowest level since July 15.
The South Korean firm on Saturday urged all customers affected by the recall, which it voluntarily initiated on Sept 2 due to faulty batteries causing Note 7 phones to catch fire, to turn off their phones.
Some analysts estimate the firm might lose nearly 5 trillion won worth of revenue after accounting for costs of the recall.
The company has said it had sold 2.5 million Note 7s that need to be replaced.