Samsung offers financial incentives to stem Note 7 bleeding

Samsung Electronics on Thursday offered refunds or financial incentives for U.S. and South Korea customers who exchange Note 7s for other products, as the tech giant scrambles to shore up its reputation after a damaging phone safety crisis.

The world's largest phone maker is also expanding a U.S. recall of the fire-prone model to a total 1.9 million Note 7 phones, which includes the 1 million Galaxy Note 7s it recalled on Sept. 15.

The South Korean giant is in damage-control mode as rivals like Apple Inc and LG Electronics try to steal market share from the global smartphone leader after it was forced to scrap its latest high-end device.

Samsung is boosting its marketing and promotional efforts around other Galaxy-series smartphones to cushion the blow from the demise of the premium Note 7, which it finally abandoned this week after failing to resolve overheating problems which caused some of the phones to ignite.

Samsung said on Thursday it is offering up to $100 in bill credit to consumers who exchange their Note 7s for any Samsung smartphone in the U.S.

U.S. customers who exchange their Note 7s for a refund or other branded smartphone will receive $25 in bill credit.

"We appreciate the patience of our consumers, carriers and retail partners for carrying the burden during these challenging times," said Tim Baxter, president and chief operating officer, Samsung Electronics America.

"We are committed to doing everything we can to make this right."

The U.S. Consumer Product Safety Commission said on Thursday the Note 7's "battery can overheat and catch fire, posing serious fire and burn hazard to consumers."

It added that Samsung has received 96 reports of batteries in Note 7 phones overheating in the U.S., including 23 new reports since the Sept. 15 recall announcement.

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