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

The Star (Kenya) - - News -

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.

/REUTERS

A cus­tomer ex­changes his Sam­sung Elec­tron­ics Galaxy Note 7 with a Galaxy S7 at the com­pany’s head­quar­ters in Seoul, South Korea yes­ter­day

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