Samsung offers cash to boost Note 7 recall
US customers who exchange their Galaxy Note 7s for a refund, or other branded smartphone, will receive $25 in bill credit
Samsung Electronics yesterday offered financial incentives for US and South Korea customers who exchange Note 7s for other products or refund them.
The tech giant is making an effort to shore up its reputation in the wake of a damaging safety crisis.
The consumer electronics company is also expanding a US recall of the fire-prone model to 1.9 million Note 7 phones, which includes the one million Galaxy Note 7s it recalled on September 15.
The South Korean giant is in damage-control mode as rivals such as Apple Inc and LG Electronics try to steal market share from the global smartphone leader, after it was forced to scrap its latest high-end device.
Samsung is boosting its marketing and promotional efforts around other Galaxy-series smartphones to cushion the blow from the demise of the premium Note 7. The firm finally abandoned the device this week after failing to resolve overheating problems, which caused some of the phones to ignite.
Samsung said it is offering up to $100 (about Sh10,128 ) in bill credit to consumers who exchange their Note 7s for any Samsung smartphone in the US. US customers who exchange their Note 7s for a refund or other branded smartphone will receive $25 (Sh2, 534 ) in bill credit.
“We appreciate the patience of our consumers, carriers and retail partners for carrying the burden during these challenging times,” said Tim Baxter, president and chief operating officer, Samsung Electronics America. “We are committed to doing everything we can to make this right.”
The US Consumer Product Safety Commission yesterday said the Note 7’s “battery can overheat and catch fire, posing serious fire and burn hazard to consumers”.
It said Samsung has received 96 reports of batteries in Note 7 phones overheating in the US, including 23 new reports since the September 15 recall announcement.
In the US, Samsung began sending fireproof boxes and protective gloves to customers returning potentially explosive Note 7s, drawing humorous barbs from social media commentators. After days of heavy losses, Samsung’s shares ended 1.4 per cent higher yesterday.
A customer exchanges his Samsung Electronics Galaxy Note 7 with a Galaxy S7 at the company’s headquarters in Seoul, South Korea yesterday