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Business

Samsung's smartphone fires singe its brand

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Opening sequence

Business

Samsung's smartphone fires singe its brand

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COMING UP:Samsung's smartphone fires singe its brand

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Transcript

00:00:02
>> Another hefty blow for Samsung on Monday, the company's South Korean shares sliding 7% after it urged customers to shut off and return Galaxy Note7 smartphones as soon as possible. The device is now best known for its exploding batteries which have wiped $20 billion off Samsung's market value in less than two weeks.
00:00:21
But as Reuters Robyn Mak reports that may be just the tip of the iceberg.>> Investors seem to be really bracing for more lasting damage to the company's brand and reputation. If investors lose confidence in Samsung, it might affect their sales of their other smartphones. The Note7 isn't their most popular phone.
00:00:39
But if investors start questioning their flagship Galaxy S-series that would spell huge trouble for the rest of their mobile business.>> Two and a half million Note7s are expected to be recalled, leaving droves of unhappy users looking for a replacement but that doesn't mean this is an automatic win for Samsung's number one arch rival.
00:01:00
>> There are quite a lot of Android devices out there such as Huawei and OPPO so many people that are looking to switch may actually end up going to the other Android makers rather than Apple.>> Airlines around the world have already slapped Note7 with an inflight ban, adding to the embarrassment of the battery fiasco that's come right as the company was trumpeting its return to mobile success.
00:01:21
Now that bright future that the company painted could be in jeopardy as limiting the damage to its reputation becomes priority number one.