Samsung is offering its Galaxy Note 7 customers in South Korea either full refund for their returned handset or exchanging them for another Samsung smartphone, reports in the local media reveal.
The move from Samsung comes just days after it announced that it is halting production and sale of its explosion prone Galaxy Note 7 and is a strategic move to retain what’s left of the customer loyalty after the huge global fiasco.
Those opting to get their money received a KRW 30,000 (US$26) gift card, while anyone choosing to swap for another Samsung handset got an additional KRW 70,000 phone bill credit.
“This is compensation for our customers who experienced a big inconvenience,” the company said in a statement.
The world’s largest smartphone maker initially recalled 2.5 million Galaxy Note 7s on September 2 after reports of units burning up. The already damaging move turned into a full-blown crisis when replacement Galaxy Note 7s also started catching fire.
While the image of the company was tarnished, its stock also received a huge beating at the stock exchange with as much as 10 per cent of its value declining in just three days. The plunge was only arrested on Thursday when stock closed up 1.4 percent.
Samsung has already slashed its third quarter profit estimate by one third and this is because of the huge hit it will take after deciding to shutter production and sales of Note 7 globally.
While Samsung’s intentions behind stopping the production of the Note 7 may have been good, the decision wasn’t welcomed by everyone – specifically those who have been loyal Samsung customers. In interviews in the local media, several people said that they were only returning the device after Samsung’s decision to discontinue the Note 7 and not because they were scared that the device might blow up. Because the company has decided to cull the Note 7, customers have no choice but to return the handset as they will not be receiving any firmware updates or OS updates down the line.