Officially, the US Consumer Product Safety Commission has issued a recall of Samsung’s Galaxy Note7 smartphone. According to the commission’s report, the handset, which went on sale in the US in August and received positive reviews, can overheat and catch fire and poses a risk of serious burns to consumers.
The news isn’t exactly unexpected, as Samsung issued a statement on Sept. 2 saying that it would replace consumers’ Note7 devices with a new one if they felt unsafe. The news about the phone’s risk of catching fire first surfaces one South Korean social media, when users began posting images of their apparently scorched handsets.
From there, Samsung began investigating the matter and found 35 instances of the Note7 burning. The issue was traced back to a flaw in the handsets’ batteries.
After the initial reports of the fires began circulating, Samsung saw its market value slashed by $7 billion. When the company announced that it was issuing a voluntary recall, however, the value fell another $7 billion.
According to Bloomberg, Samsung actually lost $22 billion in market value over two days.
The Galaxy Note 7 is a hugely important product for Samsung. The handset is marketed as the company’s number two mobile device behind the flagship Galaxy S7. It also serves as a direct competitor to Apple’s big-screen iPhone 7 Plus.
As a result, Samsung’s misfortunes could prove to be a boon for Apple. The iPhone maker is already reporting that preorders of its iPhone 7 Plus has sold out online. And with news that Samsung’s handsets could catch fire, consumers may be more included to opt for and iPhone for their big-screen handset needs.
If you’ve already purchase a Galaxy Note7, the USCPSC provides information on ways for you to replace your device or receive a refund.