Samsung Clings On to Customers With Extended Credit Terms

Although Samsung’s Galaxy Note 7 has been nixed, Samsung is hoping that Galaxy Note 7 users will not abandon its products completely. The electronics firm has upped the credit to $100 for users who exchange a Note 7 for another Samsung device in the U.S., but this offer has not yet been extended to other countries.

Samsung is abandoning its Galaxy Note 7 and will not produce any more of the ill-fated smartphone. After the original models burst into flames along with Samsung’s reputation, Samsung recalled the devices only to have replacement models do the same thing. However, the company is attempting to cling on to existing users and is taking measures to persuade them not to abandon Samsung phones completely.

According to Techcrunch, Samsung is offering credit notes of greater amounts for consumers who replace a Galaxy Note 7 phone with another Samsung phone. The fund and exchange program in the U.S. applies to owners of original and replacement phones. Samsung will replace devices for any other Samsung device with a credit of up to $100. Users in the U.S. who choose to get a full refund or who choose a different brand will receive a smaller $25 credit, an effort by Samsung to compensate the consumer for the inconvenience associated with Galaxy Note 7 ownership and the recalls.

Samsung users in other countries are not yet eligible for the extended credit, but Samsung may make an announcement on this later. Samsung’s refund program was expanded in some parts of Asia and Australia this past week and, in the U.K., the refund and exchange program states that only consumers who exchange the Note 7 for another Samsung model will be refunded the difference in price.

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.”

Baxter emphasized the company’s concern for the safety of its customers and again asked Galaxy owners to “power down and take advantage of the remedies available.”


Featured PYMNTS Study: 

With eyes on lowering costs to improving cash flow, 85 percent of U.S. firms plan to make real-time payments integral to their operations within three years. However, some firms still feel technical barriers stand in the way. In the January 2020 Making Real-Time Payments A Reality Study, PYMNTS surveyed more than 500 financial executives to examine what it will take to channel RTP interest into real-world adoption. Here’s what we learned.

Click to comment