On Thursday, Samsung Electronics offered monetary incentives for customers in South Korea. These are for consumers who trade in their Galaxy Note 7 smartphones for other Samsung Models. The company rushes to shore up its name in the heels of a destructive safety disaster.
The South Korean giant is in damage-control mode as rivals Apple and LG Electronics attempt to steal market share from the global smartphone leader following the scrapping of its latest flagship device.
See Related Article: Samsung Temporarily Halts Note 7 Production
Samsung started distributing protective gloves and fireproof boxes to customers in the United States returning potentially explosive Note 7s.
In its home market, the smartphone manufacturer began to offer refunds or exchanges for other products. Customers who returned their Note 7s, which cost about $880, were offered a coupon worth 30,000 won ($26.91). Meanwhile, those who opted to swap fir another high-end smartphone will get an additional 70,000 won mobile credit.
Samsung said in a statement that the incentives would compensate consumers for their huge inconvenience.
Following days of heavy losses, Samsung shares had rebounded 2.4 % by 3:55 GMT in a flat broader market.
The firm cut its quarterly profit estimate on Wednesday by $2.3 billion to show the impact of the Note 7 withdrawal. This provides some investors hope that the monetary cost of the fiasco had been largely accounted for.
See Related Article: Q3 Profit Grew Amid Galaxy Note 7 Disaster for Samsung
The real damage is to Samsung’s reputation
However, several analysts acknowledge the real risk to South Korean conglomerate rests in the reputational damage it bears in a cut-throat industry.
The Note 7 letdown could challenge economic growth, South Korea’s central bank said. However, the institution said it needed more time to consider the effects.
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