Amid a global recall of 2.5 million Samsung Galaxy Note 7 devices over claims of the smartphone exploding while charging, the company announced that it will allow customers to swap their Galaxy Note 7 with the Galaxy S7 or S7 Edge. The leading smartphone company also said that the exchange of the Galaxy Note 7 phones will begin as early as next week.
The South Korean tech giant announced on Friday an unprecedented global recall of the device and also halted its sales after an investigation, which revealed that some Galaxy Note 7 handsets caught fire because of faulty battery cells.
Samsung issued an official statement on exchange of the Galaxy Note 7 devices for customers in the United States. According to the U.S. Product Exchange Program for Galaxy Note 7 owners, consumers who own the device have two options: exchange the existing phone for a new one, or swap the device for a Galaxy S7 or Galaxy S7 edge -- the latter also includes the refund and replacement of any Note 7 specific accessories.
"In addition, affected customers will receive a $25 credit on their phone bill or a $25 gift card for their troubles. Samsung did not say when the Note 7 will be available for general purchase," The Verge reported on Saturday.
Koh Dong-jin, the head of Samsung's handset business division, told reporters that 24 out of 1 million Galaxy Note 7 smartphones have been affected by the defective battery.
"To date (as of September 1) there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market," Samsung said in a statement. "However, because our customers' safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7."
The current recall and sales halt of the Galaxy Note 7 could bring a major problem in Samsung's plans, experts believe, while some analysts think this could reflect in the company's overall profits. Especially since Apple is about to launch its 2016 flagships, iPhone 7 and iPhone 7 Plus, at an event on Sept. 7.
According to Credit Suisse, a recall or major shipping delay could result in a loss of 1.5 trillion won ($1.34 billion) in Samsung's 2016 operating profit estimate of 30.2 trillion won. However, this is said to be an "absolute worst-case scenario." Experts believe the company might solve the current issue before it enters the fourth quarter.
In the meantime, Samsung has also delayed the sale of Galaxy Note 7 in India, which was supposed to happen on Sept. 2. The company hasn't revealed when Indians can expect the flagship phablet to be launched in the country.
