10/26/16

Cash incentives are helping keep Galaxy Note 7 customers in the Samsung family

Loyalists are only grudgingly returning their recalled devices.

The majority of Samsung customers returning their Galaxy Note 7 phones are opting for another model from the Korean electronics giant, according to Sprint CEO Marcelo Claure.

“Most of them are basically switching to a Galaxy S7,” Claure said Tuesday in a conference call with reporters.

Samsung issued a rare second recall for the “phablet” earlier this month and has now pulled the phone from the market, a move that threatens the company’s position as the world’s leading smartphone maker.

However, Claure said Samsung customers are proving loyal to both Android and the brand despite the major misstep.

“Even with this, they begrudgingly gave back their Note 7,” Claure said. “I’m a believer that Samsung will recover.”

Samsung offered an extra $100 to customers who returned their Note 7 for a Samsung phone, raising questions about how the company will fare in the coming months as buyers decide on an even footing whether to go with Samsung or another phone brand.

T-Mobile operating chief Mike Sievert said Monday that while many customers are sticking with Samsung, clearly some are going to the iPhone or other Android devices.

“Because you are talking about a lot of customers, all things are happening,” he said in an interview with Recode. “We are very delighted a lot of them are staying with the Galaxy family. But you see a number of different dynamics happening.”

http://www.recode.net/

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