Some Samsung Note 7s have caught on fire
Some Samsung Note 7s have caught on fire

Samsung Galaxy Note 7: Company giving $100 to users of exploding phone in attempt to keep them with brand

The company is paying out to people to try and stem the damage from its exploding phones

Dan Swing
Friday 14 October 2016 12:47

Korean phone manufacturer Samsung is to offer Galaxy Note7 users $100 if they swap the exploding handset for another Samsung device.

The world’s biggest smartphone manufacturer issued a recall for the device and discontinued production after a series of battery explosions were reported by users.

“We appreciate the patience of our consumers, carrier and retail partners for carrying the burden during these challenging times. We are committed to doing everything we can to make this right.” Samsung’s US President Tim Baxter said in a statement.

“Customers’ safety remains a top priority and we ask consumers with an original or replacement Galaxy Note7 to power down and take advantage of the remedies available.”

Galaxy Note7 users will be entitled to an additional $100 towards another Samsung device. The company is offering just $25 to customers who decide to switch to another phone manufacturer or only want a refund, in addition to the original value of the phone.

Samsung customers UK and Ireland who want to return their Note 7 should contact the company through their recall program on the company’s website.

There have been no reports of explosions or fires occurring with the Samsung S7 or S7 Edge, the company’s flagship phones. So far Samsung hasn’t offered explanation for why the devices have been catching fire.

Today the company also posted a second profit warning in a week, suggesting profit loss would increase from an estimated $2.3 billion to at least $4.8 billion. More than $19 billion has been wiped off the company’s share value since the recall.

Samsung start shipping return kits to Galaxy Note 7 owners

Apple and Google look set to make gains in the mobile market as a result of the recall. A survey by eCommerce company Branding Brand found 60% of current Samsung users would not buy another device from the company. 30% of that group would buy an iPhone, 8% said they would get the recently announced Google Pixel phone, while the rest would move to another brand of Android device.

“As we’ve watched the Galaxy Note7 recall and discontinuation play out, even more people say they will switch their smartphone brand,” said CEO Chris Mason.

“Consumers want to be confident in their personal safety and will choose a new smartphone accordingly.”

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