|Stats: 286 members, 6,382 topics. Date: March 22, 2017, 9:08 pm|
A series of battery explosions in Samsung Electronics' Galaxy Note 7 smartphone is testing the South Korean technology giant's crisis management ability after consumers posted online photos and video clips of the charred devices.
Samsung Electronics shares fell 2.04% to a two-week low of 1,587,000 won each on Thursday hurt by the news. Samsung has not revealed the manufacturer of the batteries. Analysts said that Samsung Electronics needed to calm investors worries by showing that it can cope with the emergency.
"The battery explosion scandal is becoming more serious as at least seven cases have been reported within a week," said Lee Seung-woo, an analyst at IBK Securities. "Samsung should come forward quickly to soothe investors' anxieties."
Lee said that the company should recall the smartphones. Retailers agreed, with some saying orders for the Galaxy Note 7 fell sharply in the last week.
"People had been crazy for the new Samsung smartphone, but now few are looking for it," said a manager at a SK Telecom outlet in downtown Seoul, asking not to be named. "We wish this scandal will calm down as soon as possible as Samsung smartphones account for a significant portion of our revenues."
He said that the outlet had sold around 14 Galaxy Note 7 smartphones a day before the scandal broke.
Samsung declined to comment on the explosions, only saying that it was delaying its Galaxy Note 7 supply to the nation's three telecommunication carriers because it was conducting additional quality control.
"We have no official comment yet for the explosions," said a Samsung spokesman. "We only can confirm that supply for the smartphone is delayed due to the quality examination."
Samsung is the world's No. 1 manufacturer of smartphones with a 28% market share in the first quarter of 2016, according to TrendForce, a market information provider.
YTN, a local cable news channel, reported that Samsung would announce on Friday a recall of all of its Galaxy Note 7 smartphones, although the company did not offer any confirmation.
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