• Several Samsung Galaxy Note 7's lay on a counter in plastic bags after they were returned to a Best Buy on Sep 15, 2016 in Orem, Utah.

Several Samsung Galaxy Note 7's lay on a counter in plastic bags after they were returned to a Best Buy on Sep 15, 2016 in Orem, Utah. (Photo : Getty Images/George Frey)

Passengers have been warned against carrying their Galaxy Note 7 phones on planes by major airlines. Those found in violation of these rules will attract a penalty of $179,399 or an imprisonment term of up to 10 years.

According to The Verge, the airlines have banned the Note 7 because of its vulnerability to fire risks. This follows its prohibition by the Federal Aviation Administration, where the agency outlines that passengers caught flying with the device will be charged with a federal offense.

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Meanwhile, Samsung's total stock has reportedly dropped by 8 percent over the past few weeks after the epic fail of the Galaxy Note 7 replacement phones. The South Korean tech giant's losses have accumulated substantially over the past few weeks after it stopped the production and sales of the Note 7 model from the market. The company forecasted a knock of over $5.1 billion to the operating profit for six months all through March 2017, CNN reported.

A prediction by Nomura Securities recently highlighted that Samsung's decision to drop the Note 7 sales will attract a total loss of $9.5 billion in lost sales. The company, is, however, expected to weather the losses considering the fact that it has a market value of about $194 billion as well as annual sales of $179 billion.

The reasons behind the flaws in the Note 7 models is still under investigation. Both the US Consumer Product Safety Commission and the tech giant company are working on the issue and are expected to release information on the gadget's malfunction soon.

Judging from the failure of the Note 7 replacement phones, it is highly expected that Samsung product sales will fall due to trust issues with consumers. Many of the company's product users have reportedly lost faith in the safety and quality of Samsung devices.

Meanwhile, the company has offered $100 in credit for customers, both carrier and retail outlets who return their Note 7 for another Samsung phone. The extra financial incentive is aimed at ensuring that consumers continue using Samsung devices as well as to offer a token gesture for Note 7 customers.

Also, some carriers have started offering customers who opt for a full refund $25 as credit for turning in their phones. Here is a clip of more about the Note 7 ban: