Samsung Electronics has recently offered upgrade programs for the Note 7 users in South Korea.
The program offers the option to customers for exchanging the recalled Note 7 device for a new S7 phone. This is a new attempt by the company to retain its customers.
The company made a statement regarding this option on Monday, offering customers the option of trading the recalled Note 7 devices for a new S7 device, either the flat screen version or the curved screen one. Those who exchanged their Note 7 devices for a new S7 device would also be allowed to trade up their S7 device next year for the S8 or the Note 8 that would be launched in 2017.
End of Note 7
Samsung had earlier decided to permanently put an end to the production of the Note 7 devices, due to the combustion debacle of the phone. Samsung has already offered a monetary refund for the device along with exchange offers for the same. In addition, the company has also offered a financial incentive to the tune of 100,000 won, or $88.39, for the customers who have been affected in Korea.
Upgrade Program Options
Those who opt for the new upgrade program will have to make a payment for half the price in case of the S7 device and not the entire amount, prior to exchanging for the S8 or Note 8, according to a statement from Samsung.
Note Series to Be Continued
By offering this option for the upgrade to the Note 8, Samsung seems to have reinforced its earlier statements with regard to continuing with its Note series. However, the option is only available for Note 7 customers in Korea for now. According to Samsung, the program availability option in other countries and markets will depend on individual situations of the countries, regarding which the company did not offer more information.
Bid to Make Up Sales
The company has been stepping up its marketing as well as promotional activities in case of all its S phones, in a bid to make up for the loss accruing from the Note 7 debacle. The collapse of the Note 7 has resulted in a loss of around $5.4 billion, with respect to the operating profits for the third quarter of 2016 as well as the first quarter of the upcoming year.
According to a few analysts, the company needs to offer some incentives to the customers who have been affected by the Note 7. By taking this step, Samsung can limit the long-term harm that could be done to the brand and its reputation, arising from the Note 7 fiasco.
Samsung is also facing some legal challenges issued by some of the customers. According to Harvest Law, a law firm in Korea, its lawyer Peter Young yeelKo and 526 other users have filed lawsuits in a local court. The suit against the company seeks a compensation of $442.61 or 500,000 won for every person. Samsung, however, has not made any comments regarding the lawsuit.