Exploding Smartphones Cost Samsung A Fortune

1it enterprise

1it enterpriseSamsung Electronics Co. Ltd. is trading stakes in other technology organizations for the biggest recall in the history of the smartphone industry. They have dissociated stakes in four technology companies in order to pay for the recall mentioned the South Korean company yesterday. Rambus Inc. (RMBS), Sharp Corporation and Seagate Technology Plc. are the companies Samsung has sold its shares. The company has also mentioned about the Dutch Semiconductor Company ASML Holding NV which is also included in the list of companies where Samsung has sold its shares. Samsung will need about a billion dollars to accommodate the cost of recalling about 2.5 million phones of which the share sales help gather $888.85 million.

 

The Galaxy Note 7 phones exploding due to overheating of the batteries is the reason for the recall. The formal recall of the Galaxy Note 7 phones was initiated by the United States Consumer Product Safety Commission. It could be a smart business move said the company. The sale will help focus in core business added Samsung. The company is facing newer challenges in the newer markets like China and India from the presences of the cheaper manufacturers. To reimburse this Samsung is exploring new territories such as Bio-Pharmaceuticals.