|Published : 12 Oct 2016, 08:53:33|
Samsung shares slide after Note 7 production stops
Shares in Samsung fell further on Wednesday after the smartphone maker said it would scrap production of its flagship Note 7 model, reports BBC.
Shares fell three per cent at the open, adding to Tuesday's eight per cent fall.
The company has seen more than $20bn wiped off its market value in two days.
The Note 7 was recalled over exploding batteries in September but as new phones showed the same problems, the South Korean firm has now scrapped the device entirely.
The drop in shares marks a one-month low for Samsung as concerns grew that the current crisis will go beyond the costs of the recall and affect the brand's overall reputation.
Analysts are suggesting the Note 7 crisis could cost Samsung in the long run, particularly coming just as rivals, including Google and Apple, have announced new high-end smartphones.
The Note 7 had been seen as the main rival to Apple's new iPhone 7 model. Samsung's woes have sent Apple's shares to a 10-month high.