Samsung Estimates Financial Fallout From Note7 Through Q1

By Todd R. Weiss  |  Posted 2016-10-14 Print this article Print
Samsung, Note7, Note7 fires, Note7 recall, smartphones, smartphone fires, quarterly losses, Galaxy S7

"We appreciate the patience of our consumers [and] carrier and retail partners for carrying the burden during these challenging times," Tim Baxter, president and chief operating officer of Samsung Electronics America, said in a statement. "We are committed to doing everything we can to make this right."

Under the U.S. Note7 Refund and Exchange Program, Note7 owners can choose to receive a full refund on the purchase price of their device, or can choose another Samsung device and receive a bill credit of up to $100 toward its price. Consumers can also return their Note7 and get a $25 credit toward the purchase of another brand of smartphone. If the price of the replacement device is lower than the price of the Note7, consumers will receive a refund for the difference.

Customers who have already exchanged their Note7 devices for another Samsung smartphone will receive an additional credit up to $75 from select carriers or retail outlets, which will be in addition to $25 credits that were issued initially.

The $100 credit for buyers of another Samsung device is a "sign of our appreciation for your patience and loyalty," according to the company. Note7 buyers who seek refunds will get credits up to $25 from select carriers and stores.

The Note7 fires and explosions were apparently caused by the non-removable lithium-ion batteries in the phones, which could overheat and burst into flames, posing serious fire and burn hazards to consumers, according to the CPSC. About 1.9 million Note7 phones were affected by the U.S. recall in the end, after the initial recall affected 1 million of the handsets.

Samsung and the CPSC are continuing to urge all Note7 customers to immediately shut off their phones to eliminate the risks and to contact Samsung or their mobile carriers to return the defective units.



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