Samsung shares dip amid reports of exploding batteries


Samsung on Thursday touched two-week lows after it delayed shipments of its premium Galaxy Note 7 smartphone amid reports of exploding batteries.

The firm announced the delays for quality control testing late on Wednesday and also said Galaxy Note 7 shipments to South Korea’s top three mobile carriers had been halted, rattling investor hopes for strong second-half mobile earnings.

Quality control problems, if confirmed, could deal a major blow to the world’s top smartphone maker, which was counting on the Galaxy Note 7 to defend sales momentum against new Apple Inc phones expected to be unveiled next week.

“Apple is supposed to show off the iPhone 7 next week and this issue (with Samsung) has emerged, so the current state of things does not look good,” HDC Asset Management fund manager Park Jung-hoon said.

A decline in Samsung’s smartphone average selling prices and profits appeared inevitable given the current problems with the Galaxy Note 7, he added.###