New phone delay hits Samsung shares

Samsung’s mobile business has suffered a blow after reports of exploding batteries forced the firm to delay shipments of Galaxy Note 7 smartphones, and knocked $7b (€6.25bn) off its market value.

The stock price nose-dived after the global smartphone leader reported the shipments had been delayed for quality control testing, and that shipments to South Korea’s top three mobile carriers had been halted.

Faults with the new premium flagship device could deal a major blow to the South Korean giant, which was counting on the Galaxy Note 7 to maintain its strong mobile earnings momentum against Apple’s new iPhones expected to be unveiled next week.