Samsung phone recall could be trouble ahead of holiday season

Global Business

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The decision by Samsung to halt production of its flagship Galaxy Note 7 smartphone has sent shock waves through the tech industry.

Analysts said the move could cost the company billions of dollars, and many predict Samsung’s competitors will cash in as we head toward the holiday season.

CCTV America’s William Denselow reports. Follow William Denselow on Twitter @willdenze

Samsung phone recall could be trouble ahead of holiday season

Samsung phone recall could be trouble ahead of holiday season

The decision by Samsung to halt production of its flagship Galaxy Note 7 smartphone has sent shock waves through the tech industry. CTV America's William Denselow reports.

Images of burned phones have resonated around the world, and some analysts are expecting Samsung could suffer losses of at least $10 billion.

Samsung’s shares have plummeted slashing around $20 billion off its market value. Competitor Apple has been a beneficiary when it comes to the high-end smartphone market. Some industry experts said this rivalry could have been a factor in the Note 7’s demise, especially after an initial recall failed to fix the problem.

Now, experts predict Samsung’s setback means Apple could sell considerably more iPhones as we head into the holiday season.