Samsung’s Note 7 headache could get a lot stronger.
Bloombergreports that AT&T is considering stopping sales of the Note 7 entirely. The report, which quotes a person familiar with the situation, was published on Friday evening. AT&T may have already taken the decision, according to Bloomberg, which estimates that the carrier is Samsung’s third largest client.
Carriers insisted that there’s no indication that the replacement Note 7 units present any safety risk and said they only allowed the replacements for their customers’ peace of mind.
If AT&T decides to stop selling the Note 7 completely, Samsung faces a real risk of contagion, as other carriers could decide to follow AT&T’s lead. Operators may not want to associate their image with a device that competitors denounced as unsafe.
Interestingly, this week’s setbacks have not spooked investors too much. Samsung’s stock is at an all-time high, buoyed by the strong earnings estimates that the company posted for the quarter ending on September 30.