Samsung’s £11bn hit

SAMSUNG has seen £11bn wiped off its market value after recalling its Note 7 smartphone due to the risk of it bursting into flames.

Shares sank nearly 7pc in South Korea on Monday after it previously told customers to switch off and return their phones amid reports of the batteries exploding after charging. The sharp fall on the Korean stock market comes after US aviation authorities warned travellers not to turn on or charge the Note 7 during flights or store them in checked-in bags.

Last week Samsung recalled 2.5m of the phones and vowed to replace all which have been handed in.