Samsung discontinued the Note 7 earlier this week after handsets deemed safe by the company began setting on fire just like the handsets they replaced. Samsung is now offering those who choose to exchange the phone for any other Samsung device up to $100 credit as a goodwill gesture.
Those who opt to exchange the Note 7 for a full refund or for another brand of smartphone are being offered a smaller $25 credit for the hassle. Currently the goodwill credit appears to be limited to U.S customers.
Commenting in a statement on the U.S. refund and exchange program, Tim Baxter, president and COO of Samsung Electronics America, said: "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."According to a report by The New York Times, Samsung still doesn't know exactly why Note 7 smartphones have been catching fire. The company was apparently unable to replicate the problem at their labs and have so far been unable to identify the exact cause of the issue.
Samsung's recall of the devices was made official today via the U.S. Consumer Product Safety Commission, citing "serious fire and burn hazards" to consumers. According to the statement, Samsung has received 96 reports of batteries overheating in the U.S., including 23 new reports since the September 15 recall announcement. Samsung has also received 13 reports of burns and 47 reports of property damage associated with Note 7 phones.
Some reports predict the recall could cost the company $17 billion. Samsung has already issued a profit warning and slashed its Q3 estimate by a third, with $2.3 billion in lost operating profits, down nearly 30 per cent from a year earlier.