The Galaxy Note 7 has been nothing short of a nightmare for Samsung. Despite a series of initial positive reviews, it didn’t take long before we saw an influx of reports regarding Note 7 devices either exploding or catching fire while charging. Now we seemingly can’t go a day without hearing about a new crazy incident involving Samsung’s phablet.

Over the past few weeks we’ve seen stories of Note 7 explosions destroying cars, charring homes, and damaging hotel rooms. Most recently, a 6-year old kid had a Galaxy Note 7 explode in his hands mid-use. The kid was rushed to the hospital but is reportedly doing fine now.

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Without question, the Note 7 debacle and Samsung’s subsequent recall has done a tremendous amount of damage to Samsung’s brand and bottom line. Pictures like the one below, after all, can’t be good for business.

galaxy-note-7-fireImage Source: Lydia Dornacher

While precise figures remain up in the air, some estimates peg the total cost of Samsung’s recall in the $1 billion range. And that’s to say nothing of the hit Samsung shares have experienced recently.

In light of Samsung’s recall and the recent FAA directive imploring Note 7 owners not to turn on their device mid-flight or even tuck it away with their checked-in baggage, Samsung shares have been in something of a free-fall lately.

At the opening of trading today, Samsung shares were down nearly 6.9% from last Friday.


All the more jarring is that Samsung’s market cap has endured a whopping $26 billion hit since Samsung first announced its intention to initiate a worldwide recall of the device.