Shares crash in Korean firm

Samsung stops sales of Galaxy in fire crisis

samsungSamsung has stopped selling its Galaxy Note 7 smartphones after a series of fires, one of which forced a plane to be evacuated.

The Korean firm is working with regulators to investigate the problem.

In the meantime it issued a statement telling customers with a Galaxy Note 7 or replacement Galaxy Note 7 to “power down and stop using the device.”

Samsung now faces enormous financial and reputational costs. Shares crashed yesterday wiping 14.7 trillion won (£10.7bn) off its market value.

The new device  received positive reviews and sold out soon after it launched in August

But stories of scorching spread on social media and the company was forced to look into reports of faulty batteries an in September it recalled 2.5 million phones.

Tech experts are blaming the race to produce ever smaller batteries which also retain their charge for longer. There are suggestions that negative and positive electrodes coming together have caused short circuits in the Samsung phones which then overheat and in cases explode.

The company is now offering to exchange Note 7s for other products amid speculation that it could scrap the model.

Samsung’s woes, just ahead of the Christmas selling season, was good news for its big rival Apple whose shares hit their highest in 10 months this week.

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