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Samsung SDI shares drop 3% on Galaxy Note 7 recall

[THE INVESTOR] Shares of Samsung SDI declined further on Sept. 5 after Samsung Electronics’ recall plan of all Galaxy Note 7 smartphones using the company’s batteries announced last week.

The price closed at 105,500 won (US$95), down 2.6 percent from trading on Sept. 2.

Earlier in the day, local news outlets reported that Samsung has decided not to use Samsung SDI batteries for the Note phone. The company supplied batteries for 70 percent of the Note phones, while China’s Amperex Technology supplied the remaining 30 percent. 

Galaxy Note 7
Galaxy Note 7


Samsung plans to recall about 2.5 million Note phones, including 1.5 million inventories secured by telecom carriers, around the world after a series of explosion reports on faulty batteries.

“Samsung SDI will be responsible for most of the 2.5 million Note phones recalled. The company’s earnings will be hit hard,” said Lee Seung-hyuk, an analyst at Korea Investment and Securities.

The analyst estimated the company’s operating loss at about 18 billion won in the third quarter.

By Lee Ji-yoon (jylee@heraldcorp.com)
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