Aiming to stem defections resulting from its Galaxy Note 7 recall, Samsung's U.S. subsidiary said Friday that it will offer customers a $25 credit if they stick with a Samsung smartphone rather than get a refund or exchange their "phablet" for another maker's device.
The move comes amid an unprecedented global recall of all Note 7 "phablets." Samsung initiated the recall on Friday following 35 reports of explosion, fire and other battery-related issues.
"While there have been only a small number of reported incidents, Samsung is taking great care to provide customers with the support they need. Samsung has identified the affected inventory and stopped sales and shipments of those devices," Samsung Electronics America said in a statement. "For customers, who have Galaxy Note 7 devices, Samsung will voluntarily replace their current device with a new one from today."
U.S. carriers are also offering customers other options including a refund or credit toward another device. Sprint has also said it will provide a loaner smartphone to customers who want to wait for a replacement Note 7.
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Samsung said it will offer a $25 gift card or bill credit to those customers sticking with a Samsung phone — either the S7 or Note 7. Samsung said it expects to have replacement Galaxy Note 7 devices as soon as next week. Those who choose a Galaxy S7 or Galaxy S7 Edge will also get a refund of any difference in price.
"Samsung is taking a proactive approach to address customer needs around the Note 7," Samsung Electronics America President Tim Baxter said in a statement. "We are encouraging customers to exchange their Note 7 by taking advantage of our Product Exchange Program. The safety and satisfaction of our customers is Samsung's top priority."
The recall comes at a particularly unfortunate time for Samsung, with Apple set to unveil its new iPhone at an event next week.
—By Ina Fried, Recode.net.
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