Belfast Telegraph

Samsung shares plunge amid Note7 safety crisis

Samsung has seen more than 18 billion US dollars (£14.6 billion) wiped off its market value as the crisis engulfing its Note7 smartphone deepened.

Shares in Samsung Electronics closed down 8% in Seoul before the world's biggest smartphone maker announced it would kill off the Note7 device despite costly efforts to fix its fire-prone battery.

The move came a day after the technology giant halted sales because of concerns over consumer safety, triggered by a series of reports that claimed replacement devices were still bursting into flames.

Analysts say the decision to ditch the Note7 could cost the firm billions of dollars and taint its reputation in the eyes of consumers.

Mark Johnson, an associate professor of operations management at Warwick Business School, said: "Samsung are probably paying the price for trying to rush the Note7 to market before the iPhone 7 was released. As such many of the challenges that are ironed out in extensive product testing may not have been found."

The South Korean firm first scrambled to address the problem with the Note7 in September, recalling 2.5 million phones and vowing to replace all the devices which have been handed in.

The debacle looks set to be a major setback in its hard-fought battle against Apple to dominate the global mobile phone market.