Halting Production of Troublesome Galaxy Note 7 Extinguishes $17 Billion in Samsung Shares

Yesterday, we broke the news that Samsung had temporarily ceased production of its controversial Galaxy Note 7. Today, the tech giant elevated that decision to permanence. Still reeling from the device’s calamitous battery faults, Samsung added insult to injury after seeing a significant 8 percent drop in share value. Tuesday’s market closure saw $17 billion in company worth comprehensively evaporate, as reported by Bloomberg.

The timing of Samsung’s decision could not be more unfavorable. The South Korean behemoth was primed to lock horns with the likes of Apple and Google, breaching the market with their flagship product alongside the newly launched iPhone 7 and Google Pixel. Unfortunately, a turbulent end to the year looms, as the Note 7 can now only watch from the sidelines.

In the frenzied run-up to the festive Thanksgiving, leading into the all-important Black Friday event, American consumers spoiled for choice with fresh gadgetry, will be casting a wary eye at Samsung. A sentiment that has not gone amiss amongst telecom companies in both the US and Australia, who have publicly declared an end to phone replacements for their users.

As Christmas descends, gift buyers worldwide are unlikely to be popping Galaxy Note 7s in their carts. With the Note 7 officially quit, they will probably opt for the iPhone 7, Pixel, or LGV20, all recently debuted and ready to fill the Samsung-shaped void in the market.

Learn more from our detailed analysis on the potential long-term impact this decision may have on Samsung’s market dominance.

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PJ: [Samsung Stock Photo]