Samsung's Stocks Drop by 2 Percent After 'Galaxy Note 7' Battery Explosion

By Angel Soleil / 1472818955
(Photo : Getty Images/Drew Angerer) A Samsung Galaxy Note 7 smartphone is displayed during a launch event for the Samsung Galaxy Note 7 at the Hammerstein Ballroom in New York City.

Samsung is delaying its Galaxy Note 7 shipments in South Korea after news that several of the units have exploded while being charged. The company is still unsure of the cause of the explosion, but thorough inspection of the units is ongoing. Due to the incident, Samsung has experienced a decline in its stocks.

Deliveries of the Samsung Galaxy Note 7 has been halted in South Korea. A Galaxy Note 7 user drew attention to the fault via South Korea's most popular social media service, Kakao Story.

"There was another explosion of the Galaxy Note 7. It was my friend's phone. A Samsung employee checked the site, and he is currently in talks over the compensation with Samsung," the user wrote.

Apparently, several Samsung Note 7 users have experienced the same problem. The company has not identified the cause of the issue. Samsung has released a statement via TechCrunch stating that it is conducting thorough inspections, and would disclose its findings to the public. The company stated that the problem was related to a faulty battery which is only present in less than 0.1 percent of the entire units sold.

Although battery problems are common during the early production of a new smartphone, the latest explosion has had a major impact on Samsung's name since the Samsung Galaxy Note 7 was highly anticipated by many customers. CBS News reported that the company's stocks dropped by two percent due to news of the exploding batteries.

IDC Analyst Bryan Ma said that the incident was a major buzz-kill for Samsung considering that its competitor, Apple, would be releasing the new iPhone this month.