Samsung ‘Galaxy Note 7’ Could Literally Be A Time-Bomb, Stocks Plummet

The initial reception of the Samsung “Galaxy Note 7” has been phenomenal. Many praised it for features like its curved display, waterproofing, and the iris scanner. However, reports are coming in that select units are exploding on their owners. This prompted the South Korean company to halt deliveries of its phablet until the matter has been resolved. In the meantime, the reports also hit the company’s stocks, causing shares to plummet.

Samsung’s shares were the lowest in two weeks at three percent by the time Thursday closed, Reuters reports, thanks to the delays of shipping their “Note 7” phones. The delay was caused by reports pertaining to the batteries of the units exploding. The company is doing some testing for quality of their phablet right now, which means that carriers won’t be featuring the devices as previously scheduled. This caused some panic among investors who were really hoping for strong mobile sales for the second half of the earnings reports.

The reports are being confirmed right now, as no actual example of “Note 7” batteries exploding has been verified. By all accounts, however, confirmation that the quality of the phablets is not up to scratch could seriously impact the sales of the units even if the problem is fixed. This could even allow Apple to catch up to the world’s largest smartphone maker once its “iPhone 7” goes on sale.

Then again, the demand for the “Note 7” has reportedly surpassed supply at Samsung, so it can be safely assumed that the company might just make it out of this fiasco relatively unharmed. More than that, reports of phones exploding due to issues with parts has been part of the smartphone industry since cell phones were invented, as Tech Crunch notes. One of the latest examples of other brands experiencing similar problems is when an Australian cyclist got burned when his “iPhone 6” exploded in his pants.