Samsung’s exploding phone – the Samsung’s Galaxy 7 Note – will cost the company a lot of money in recalls.
To raise cash to pay for the recalls already instructed, the South Korean company has been forced to sell at least 1 trillion won (£683m) of shares it owned in four other technology companies.
The tech giant and biggest Apple rival sold its shares in computer drive maker Seagate Technology, chip maker Rambus, Dutch semiconductor manufacturer ASML and Japanese electronics firm Sharp Corp.
News of the exploding phone has steadily dogged the company’s attempts at recovery as shares continue to take a beating. Recalls of the phone were ordered after dozens exploded, the recalls are expected to cost the company $1 billion. A Samsung spokeswoman told Reuters the total proceeds from the sale of stakes in other technology companies exceeded 1 trillion won (£683m).
The news of the shares sell off comes as reports of the phone exploding and catching fire have emerged from China, meaning that the dangerous fault may even be more widespread than is currently evident.
Samsung launched the Note 7 phone in China on Sept. 1 whilst the reports of the phone exploding and catching fire were circulating overseas. The company had said that the Galaxy Note 7 smartphones sold in China were safe to use. Now, two of the devices from China have reportedly caught fire.
While Samsung Struggles With The Exploding Phone, Apple’s iPhone 7 Is Having A Blast
The company has said that it is investigating one of the reported cases. Meanwhile, rival smartphone maker, Apple, said late Wednesday (Sept. 14) that it had sold out completely its initial supply of the iPhone 7 Plus and the jet black iPhone 7 and that was even before Friday, when the phone was officially meant to go on sale in stores.
So while Samsung is selling shares to pay for the Galaxy note 7 recalls, Apple’s newest phone is simply selling out and rapidly at that.