Beleaguered Samsung sheds $26 billion in value after massive recall of explosive, dangerous, flawed Galaxy Note 7

“When Samsung announced it would recall its Galaxy Note 7 devices due to explosive battery mishaps, airlines and regulators acted swiftly,” Quartz reports. “So did Samsung investors.”

“Shares of Samsung Electronics, which includes the Korean conglomerate’s smartphone division, plunged 6.9% between the Korea Exchange’s close on Friday and Monday, according to the financial data company Factset,” Quartz reports. “The stock is currently priced at 1.465 million won ($1,311.26), bringing it to lows not seen since July, and down 13% from its most recent high, on Aug. 23. Since the company announced it would recall the Galaxy Note 7, the company has shed over 28 trillion won (more than $26 billion) off its market cap.”

“Over the weekend, more airlines and regulators urged customers to proceed with caution when taking Galaxy Note 7 devices aboard. The European Aviation Safety Agency reminded passengers to keep the devices turned off during flight, as did Delta Airlines, Singapore Airlines, and other carriers,” Quartz reports. “For Samsung, the recall couldn’t come at a worse time—not only is the holiday season just around the corner, but arch-rival Apple just released the iPhone 7 [and iPhone 7 Plus].”

Read more in the full article here.

MacDailyNews Take: Karma continues her good work.

It’s best not to mess with karma. — Steve Jobs

If it’s not an iPhone, it’s an incendiary device cobbled together by a South Korean dishwasher maker.

Jeep charging a Samsung Galaxy Note 7 (left) and a Jeep charing an Apple iPhone (right)
Jeep charging a Samsung Galaxy Note 7 (left) and a Jeep charging an Apple iPhone (right)

 

Garage charging a Samsung Galaxy Note 7 (left) and a garage charging an Apple iPhone (right)
Garage charging a Samsung Galaxy Note 7 (left) and a garage charging an Apple iPhone (right)

SEE ALSO:
FAA warns airline passengers not to use Samsung phones – September 9, 2016
Beleaguered Samsung’s exploding Galaxy Note 7 destroys garage; home condemned due to fire – September 9, 2016
Beleaguered Samsung’s exploding Galaxy Note 7 destroys Florida man’s Jeep – September 8, 2016
Beleaguered Samsung’s exploding Galaxy Note 7 burns down garage; destroys Jeep in another case; airlines now banning potentially deadly device – September 8, 2016
Apple orders more parts for iPhone 7 amid Samsung recalls – September 6, 2016
Exploding Samsung Galaxy Note 7 damages Perth hotel room – September 6, 2016
Beleaguered Samsung blows it in rush to beat Apple iPhone 7 to market – September 6, 2016
Apple stock up, may benefit from beleaguered Samsung’s exploding Galaxy devices – September 2, 2016
Beleaguered Samsung to recall 2.5 million Galaxy Note 7 units over exploding batteries – September 2, 2016
Samsung may be forced to recall Galaxy Note 7 over exploding batteries – September 1, 2016
Samsung halts Galaxy Note 7 shipments due to battery explosions – August 31, 2016
Ben Bajarin: ‘Samsung will be out of the smartphone business within five years’ – November 2, 2015
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Why Android users can’t have the nicest things – January 5, 2015
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013

39 Comments

    1. If you think that this MDN Take ® is fanboy rhetoric, then you have a rather low threshold. This is actually a fairly straightforward representation of the facts.

      There are plenty of occasions in which MDN and others on this forum go overboard on social and political issues, but this is not a good example, Scott.

      I might also add that your hyperbole is about as bad as MDN’s. It is a rare extremist organization that can make Fox News coverage appear objective in comparison. Your use of the “fanboy” label is also distasteful given its highly negative historical connotations.

      1. Agreed. That term is derogatory and was specifically created to bash apple customers or those of us in the “cult”. Now it’s used generically for anyone who says anything positive about a company’s products. In this case, the Samsung note issue is very serious and mdn’s take is right on. I was watching an android authority video last night and they were downplaying the incident rate and telling people not be alarmed and not to exchange their devices. That is malpractice. The effected units of this problem are not the same as the number that have been reported, based on supplier numbers upwards of 30% of these devices used the faulty battery controller and connections, and are therefore effected. That’s why you do a full recall and re-manufactur the replacement units. If it was just 35-41 devices they would isolate the serial range and replace from existing stock. Not allocate $5 billion for the potential issue. And saying anywhere is as biased as fox is nuts. MDN doesn’t push false libelous information on a daily basis.

      2. “Karma continues her good work.”

        So, because this website supports Apple and not Samsung, the so-called “karma” that Samsung is receiving is somehow justified by people being subjected to exploding devices. I’m curious as to what Samsung did as a competitor that was so bad that they, or their customers, deserve what is happening right now?

          1. They’re certainly similar but so were the earliest versions of Windows and Mac OS. Go look at the Palm Pilots which were icons in a grid on a touch screen. Did Apple rip that off? Samsung was making Windows Mobile phones before iPhone came out. That was icons in a grid with a Start button. Does that mean everyone ripped them off?

            I don’t doubt that there was copying going on just as Apple came three years late to the smartwatch category. Does that mean they copied the original Galaxy watch or Android Wear? Why does everyone say Apple takes mediocre technology and makes it magical when they mimic other technology but Samsung stole it? Seems like two sides of the same coin.

            My only point is, the insinuation that a company deserves to have people injured by a design flaw hanging over their head as some kind of karma is a pretty mean spirited and biased way of addressing an issue. Ha ha you deserve to be responsible for people suffering is a hell of a perspective from people sharing news.

            1. Yes and Microsoft also stole apple’s IP and flipped it upside down so apple’s lawsuit wouldn’t be decided for 13 years until Steve reached a settlement with them which was that 150 million Microsoft invested in apple in 1997.

              Samsung did rip off apple’s IP and the courts awarded a 1 billion dollar judgment that Samsung has been appealing down to 542 million but which Apple has now taken to the Supreme Court to overturn.

              No, apple did not copy those watches because their design is completely different. If apple released a design almost exactly the same as those devices with a skin that mimicked their interface, then they would be copying. But they didn’t, they created their own interface that is different.

              And palm? Seriously? The newton is where the palm pilot came from, the newton was released in 1992 and dates to 1983 inside of apple. The palm pilot came out later, was conceived later, and the interface was direct copy of the newtons interface.

              You need to get your history straight.

            2. Corrections. Apple widely lost their IP battle against Samsung as most Patent Courts either unfounded or were provided with tampered evidence. Apple seeing this decided to take their fight with Samsung through court proceedings in their own backyard, suppressed key evidence, denied key witnesses and even went so far as to deny subpoenas. Oh did I mention the Jurors foreman was also had ties to Apple. Straight out of a Grisham novel.

            3. I closely follow tech news and don’t rely on just a handful of news sources. In Germany the IP Courts threw the case out against Samsung because Apple photoshopped a Galaxy Tab to look like an iPad. In the UK the IP Judge ordered Apple to apologize to Samsung for falsely accusing them of IP theft. Apple refused and the Judge ordered a hefty fine. Apple posted an apology in font size 6 and after several pages of scrolling on their UK homepage. The IP Judge ordered Apple to fix it and added that Apple pay for a full page newspaper ad. In Korea the case was thrown out (but you can expect that since Samsung is the government there). The EU also ruled against Apple for insufficient and clear evidence of copying but delayed the sale of Samsung devices for a couple of months while other lines of inquiry were made.

            4. In the Netherlands the IP Courts followed the EU decision and also delay but did not stop the sale of Galaxy devices. The legal fiasco in Germany was cited and Apple was forced to withdraw their claims after reviews of the evidence in the Netherlands proved to be another attempt at manipulating evidence. Then we come to the kangaroo court in California where apparently Judge Lucy Koh was willing to overlook a flea and swallow a camel. That in and of itself deserves a full blown article on how an IP case should never be handled and highlights everything that is wrong with our court system.

            5. You know the real irony is that Japan had always been at the forefront of advance mobile devices none of which ever saw the light of day in the U.S. markets because big brother knows what’s best for his people. At the time Blackberry was the rule of law and the restrictions placed on how phones look and feel were innovation killers. So much so that Sony had approached Steve about an iTunes Phone and wanted him to help lift the restrictions on the phone. After months of collaboration with Sony, Steve killed the project and resurrected it after a few months in what would eventually become the original iPhone (name taken from a Cisco product). Sony was right in approaching Steve about lifting restrictions because he pulled enough strings to allow this new fangled thing to skirt most restrictions or it would not have been an iPhone, now would it.

            6. And Samsung copied Japanese record players and put them out of business.

              Let’s not forget that there is proof that Samsung copied Apple. Court documents show Samsung and iPhone screens side by side with Samsung executives asking engineers to make the features more like Apple. Do you think Apple is going to put a Samsung and iPhone side by side to copy Samsung? They might copy ideas but they make them their own.

      1. How am I an asshole? The MDN Takes author is saying Samsung has done something as a company to deserve having people getting injured hanging over their heads. That was obviously not Samsung’s intention. What did they do to deserve that in their “karma?”

        I’m not an Android guy. Everything I own is Apple. I just think it’s ridiculous to paint this as karma just because it’s Samsung. If it were HTC or any other company, the tone would have been very different. They probably wouldn’t even have posted it.

        1. When you support a Slavish copier you get what you deserve. Samsung has built it’s existence on copying what others have done and then undercut them by selling at zero profit until competitors fall out. Yeah yeah you And(hem)roid lovers blah blah blah blah blah. So yes is it karma. But no we don’t want someone injured.

        2. Samsung doesn’t just knock off apple, they knock off everyone. They reverse engineers sony’s pixel splitting technology, after they shared a display facility, Sony reached a settlement with them which is why PlayStation now is on Samsung TV’s. Their vacuum cleaners are direct copies of Dyson, their washing machines and refrigerators use reverse engineered whirlpool technology, the list is almost endless. They’ve never had a truly original product, they are a “fast follower” by design. Most recently they made the bottom of the galaxy s6, s7, note7 look almost identical to iPhone 6-7 series… they are thieves and they deserve to get punished. They are just as a bad as Microsoft and the pc box assemblers in the 90’s. And for that matter, google needs to be in this too for stealing iOS conventions and visuals to redesign android.

        3. Wow where’ve you been? Especially trying to equate Windows and Mac OS’s as if they were in simultaneous development – HAH!

          You show a distinct lack of tech history knowledge which is why your remarks are so weak and utterly self-serving and in fact more typical of fanboyism you protest. Samsung’s blatant and reckless trade dress infringes are legion.

        4. Scott, a top samsung executive said, about 5 years ago – Samsung does not have a big R&D department for creating new technology because they look at the current market, determine what is viable and make their products accordingly. (Polite for copying.)
          Samsung’s copying is notorious and they have been in courts big time specifically for copying, throwing money after money in legal proceedings until the court day arrives and the technology is old. Apple was not the first.

          Arguments about everyone doing the same thing including Apple is meant by Apple detractors such as yourself to deflect the subject from the reality. Sure the mouse was invented by Xerox, but who made it viable?
          Apple made the GUI viable and practical;
          who advanced computer technology by including CDs into home personal computers?
          Who made the home desk top publishing and printing affordable and practical?
          Who made personal portable music devices practical in a way similar to Sony’s cassettes?
          Who made the phone practical in internet usage practical and transformed the way it was used by the masses (and copied by google and samsung?

          Haterboys want to declare loudly that Apple “did not invent it” to deflect the subject away from the paradigm shifting magnitude of the way that they transformed whole industries. Look at the google phone before the iPhone and after the iPhone. Look at GUI before Apple and After Apple. Look at printers before the Laserwriter and after the laserwriter.

          Its all there in black and white.

        5. Scott,
          “Samsung has done something as a company ” Yes they have. I was part of a class action lawsuit where Samsung knew about bad parts in its large TV. Took the lawsuit to make them make it right. Samsung is asian by nature. Copy, steal, cheat, to make the family rich.
          And yes, some of their stuff is good stuff, but only because they cannot sell to Apple and others if their cpu’s fail all the time. Just saying.

  1. The ridiculous part is that the news media is mentioning it as a recall. It is NOT a formal recall, but it damn well SHOULD be, and it should have been days ago.

    If the was Apple’s mess and Apple had not yet issued a recall, Congressmen, the media and the lawyers would be howling up a storm. The stock would be down 25% and there would already be a dozen class action lawsuits filed.

    I am so sick of the double standard applied to Apple.

    1. Uhh… what do you call a company making a plea to customers to return their products in exchange for another nearly a week after the affected product went on sale? The reason you get a double standard is that Apple refuses to accept a wrong and fights it until there is a big enough outcry. Exempli Gratia: Antenna Gate & Bend Gate.

      1. None of the Apple-‘gate’s had a risk of life, limb or property.

        Safety standards are calculating risks in 10e-8. Not tenths of a percentage. 0.0002% is a LOT when it comes to Safety Integrity Level (SIL). Far away from ‘fail-safe’ at least.

        1. Corrections Ton, every phone has an inherent risk of catching fire threatening life, limb and property. If you weren’t aware of it, then you should be, but Lithium Ion batteries are basically volatile and can fail at any time for any number of reasons. There are processes in place to prevent this from happening and of course there are consumer induced situations which increases the likelihood. There have been plenty of cases where other phones (iPhones included) caught fire or exploded and they happen every year. Why you don’t really read about them is because their numbers are few and most companies cover their tracks by paying off the affected consumer.

          1. I am aware of the li-ion risks in any phone including Apples. I was referring to the ‘gate’ references and the ‘it’s only %’ preaching.

            I know of explosion risks in all li-ion designs (up to Dreamliner). Many of those occur with a combination of non-standard chargers, battery replacements or (USB-C) cabling.

            The SIL ratings exactly point out these risks exists. But the should be in the 10e-6 to 10e-8 range to be considered fail-safe and acceptable for consumer use.

            Fact is that the Note 7 is severely more unsafe than it’s current competitors in both Android and Apple and all the ‘look-at-what-Apple-did-wrong’ reference never hurt anybody physically. What it did to their perception of the Apple product is a different story.

      2. Again, there is NO RECALL. Samsung is simply saying you should come in and exchange your phone. The Consumer Product Safety Commission has NOT ORDERED A RECALL – GO TO http://www.cpsc.gov/en/ AND SEE FOR YOURSELF. Indeed, this product should have been recalled, and that recall should have started last week.

        A recall has a very specific legal meaning and certain actions must be taken – including contacting all owners and arranging to have the recalled good received back and destroyed. Samsung has issued an “Exchange Program” in which is advises that you power down your Note 7 and return it. You have to contact them. HUGE difference.

        Go look on Samsung’s home page. The word RECALL is nowhere to found. There is a one line thing at the top for “GALAXY NOTE7 EXCHANGE PROGRAM: ACT NOW AND EXCHANGE YOUR DEVICE” – follow that link and read their FAQ “To participate in the U.S. Note7 Product Exchange Program, you should contact your carrier or visit the retail outlet where you purchased your phone. If you purchased your Note7 on Samsung.com, you should contact us directly at 1-800-SAMSUNG.”

        Wrong answer, Samsung, you contact the customer, let them know there is an issue, and arrange the replacement for them.

        How dare you compare this clear danger to life and property to a FAKE bend controversy, Osiris. That’s both lame and lazy.

  2. You people are so funny. Less than 0.002% of phones were affected and you act like the whole line of phones are at fault. Samsung did the right thing in recalling the device instead of waiting for a class action suit, which seems to be Apple’s modus operandi. Google “iPhone 6 touch disease”. I hope my payout is more than a few dollars.

    1. You must not follow tech news that closely. Samsung engineers took a performance bonus cut in exchange for a full recall to “maintain honor” and they were “ashamed of this oversight” a week after the Note 7 launched.

  3. And what’s with these goofy photos anyways? They remind me of the photos when the Galaxy Note first came out and MDN panned it as a ungodly massive phone. The photos were hilarious then but these are just bad taste. Someone want’s credit for their stock photos being used in this comparison.

  4. If people and property weren’t being hurt and destroyed by this ‘nightmare’, I’d be cheering. Therefore, I shall only offer polite applause.
    👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏☺👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏

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