Samsung Electronics America, Inc. (OTCMKTS:SSNLF) will make its Galaxy Note 7 safer by capping its battery life.
The electronics giant is facing backlash following a number of accidents caused from devices that overheated and exploded. The latest incident occurred when a six-year-old kid in New York was using his phone when it exploded and burned him.
A recall was issued earlier this month due to this problem. Customers hope that the move will make the gadget safer as it is one of the best mobile devices out there at the moment.
The move led SSNLF shares to slip 7% at the beginning of the week, lowering Samsung’s market value by $14.3 billion. Apart from the New York incident, users in Florida, South Carolina and Australia have experienced explosions in cars, houses and hotels.
The Florida incident caused a jeep to go up in flames while the device was being charged in the car. The Australia one resulted in nearly $1,300 worth of damage to a man’s hotel room.
There are at least 35 reports of faulty rechargeable lithium batteries. The Federal Aviation Administration also issued a warning that bans the use of Galaxy Note 7 devices on-board, including using a charger on a plane.
Samsung has yet to comment on the matter, but the issues could cause a serious decline in earnings and revenue for the company’s current quarter.
The company has sold more than 2.5 million Galaxy Note 7 tablets.
