The Korean electronics titan said it will give $100 in credit at
"carrier or retail outlets" to customers who turn in their Note 7 for
another Samsung phone, starting Thursday afternoon
The offer comes after Samsung and the US Consumer Product Safety Commission once again issued a recall for the Galaxy Note 7 -- including for replacement units. Two days earlier, Samsung confirmed that it had killed off the Note 7 and warned consumers to power down and turn in their phones.
"The Galaxy Note 7 recall has proven to be a real challenge for
Samsung. I am very concerned that consumers who exchanged their phones
for replacement Galaxy Note 7s are now at risk again," CPSC Chairman
Elliot Kaye said in a statement.
The extra financial
incentive serves three purposes: It's a token gesture meant to soften
the blow of the second recall for its most loyal customers. It's an
incentive to convince stubborn superfans who have opted to take the risk and keep them. It's also a way to keep people using a Samsung device.
The second recall marks the latest chapter in the nightmare saga that
is the exploding Galaxy Note 7. Samsung moved quickly to recall the
first batch of Note 7 phones, only to encounter incidents in which the
supposedly safer replacement phones began to catch fire as well. The
company has already warned that the debacle will cost $2.3 billion in
lost operating profits, but the bigger damage will be to its brand and credibility.
To date, according to the CPSC, Samsung has received 96 reports of
Galaxy Note 7 phones overheating in the US -- 23 more than it had since
the original recall on September 15 -- including 13 reports of burns and
47 reports of property damage.
"We appreciate the patience of our consumers, carrier and retail
partners for carrying the burden during these challenging times," said
Tim Baxter, chief operating officer of Samsung Electronics America. "We
are committed to doing everything we can to make this right."
Some carriers have already given out a $25 bill credit for switching
out their phone for another Samsung device, and customers who took
advantage of that offer can get another $75. Customers who opt for a
full refund will get $25. Likewise, customers who switch to another
brand will only get $25. All of the US carriers are offering customers
the choice to swap out the device for an entirely different phone.
Samsung unveiled the Galaxy Note 7
at a splashy event in early August in New York, and the critically
lauded handset was set to challenge the iPhone for phone supremacy this
holiday-shopping season. Some consumers, however, found that their
phones would overheat and even catch fire. The device was banned on
planes and trains.
This second recall follows the CPSC's
official recall last month, which is said to have involved 1 million of
the 2.5 million phones that were manufactured.
