Galaxy Note 7 Samsung offers financial incentives for exchanging mobile phones

Galaxy Note 7 Samsung offers financial incentives for exchanging mobile phones

Galaxy Note 7 Samsung offers financial incentives for exchanging mobile phones
Samsung Galaxy Note 7 What: AP

fights after the fires with the new top smartphone Galaxy Note 7 for its reputation as a premium manufacturer. The South Korean electronics group announced on Thursday for customers in the home and in the financial incentives to promote the exchange to other Samsung models. At the same time, the world market leader expanded its recall in the USA and provided fireproof packaging and protective gloves for the return of smartphones that were withdrawn from the market. The company also launched an advertising campaign for other Galaxy lineups to limit the damage caused by competition with and other rivals.

On Tuesday, Samsung pulled the rip cord after cases increased in which the new devices allegedly caught fire due to defective batteries. In the USA, Samsung has now expanded its recall to 1.9 million smartphones. It now affects all initial devices as well as the replacement cell phones that have already been distributed. The step is related to the complete discontinuation of Note 7 production.

To keep customers hooked, Samsung in the US, where the lion’s share was shipped, is offering buyers a $ 100 cell phone bill credit if they choose to exchange for a different Samsung model. If you want another vendor’s device or your money back, there is a $ 25 credit. There are similar incentives in South Korea.

The US consumer protection agency warned against the use of the devices. The battery could overheat and catch fire, causing burn injuries to the user. The company had 96 reports of overheating batteries on the Note 7. There are also 13 reports of burn injuries and 47 of property damage. To avoid new calamities, Samsung sent to customers.

Experts warned that the greatest damage would not come from the expected extra costs. The group expects the equivalent of 2.1 billion euros less profit in the past quarter alone. It could be dangerous if there is a lasting loss of image. The decline of and BlackBerry shows how quickly you can lose market share, especially in the mobile phone business, warned the rating agency Fitch.

How Samsung’s debacle with the Note 7 developed in 2016

With the Note 7, Samsung actually wanted to stand up to the new iPhone of its US rival and expand its top position. After the market launch, however, the number of fires increased. Samsung then ordered the replacement of all 2.5 million devices that had already been shipped. A few days ago, a device caught fire on board an aircraft that had apparently already been replaced. Apple should now play the development in the hands. But other providers such as or, who use the Android operating system like Samsung, could take advantage of the Panne series.

Financially, Samsung is likely to cope with the end of the Note 7: The electronics giant is also a leading manufacturer of televisions, household appliances, screens and semiconductors. The debacle is also fueling concerns about the economy in South Korea. However, the central bank does not expect any major skid marks in the domestic economy. “We cannot rule out that the economy will be affected,” said central bank representative Chang Min. “But we do not assume that this will dampen economic growth.”