After a mediocre 2015, this year was supposed to be a return to form for Samsung, and while the Spring started off well for them, with the launch of the Galaxy S7 and Galaxy S7 Edge, the Fall isn’t going so well for them. Traditionally, Samsung use a 1,2 punch of the Galaxy S and Galaxy Note line of devices, and while 2016 was no exception, the Galaxy Note 7 has not helped them return to form at all. In fact, the recall as a result of the exploding batteries and reports of fires, damage to property and even children, has done nothing but hurt Samsung. What began as something a PR disaster for the South Korean giant, has now turned into a sizeable financial headache, with their market value having shrunk by an incredible $26 Billion over the last few weeks.
These are facts put together by Factset, a financial data provider, which reports that the firm’s stock dropped almost 7 percent over the weekend from Friday September 9th to Monday September 12th. This is a shame for any major corporation like Samsung, but especially for the South Korean firm as its stock price was only going up since the launch of the Galaxy S7 and Galaxy S7 Edge, peaking around the period at the end of August/beginning of September as the Galaxy Note 7 started to hit shelves. Now, however, the stock has reached its lowest point since July 2016, coming in at roughly $1,300 a share, its lowest price since the peak of August 23rd, a 13 percent drop overall.
While the stock has recovered a little bit since the drop on Monday, it’s unlikely that the stock price will fully recover before the end of the year. Despite an infusion of just over $1 Billion for the sale of their printer business to HP, as well as news that they’ve figured out a solution to the battery problem, the stock price has still suffered. This $26 Billion figure will no doubt shrink over time, as the company bounces back, but it does go to show just how massive Samsung really is, if a drop of almost 15 percent in stock price equates to a loss of $26 Billion in value. For the South Korean firm, the most important thing is to get the Galaxy Note 7 recall under control, but it doesn’t appear to be easy for them, as a new update that will give users a sort of “fix” will no doubt alienate some users out there.