Samsung agrees to wider recall of original and replacement Note 7 smartphones

Samsung Electronics and the US Consumer Product Safety Commission (CPSC) agreed on an expanded recall of original and replacement Note 7 smartphones, increasing the number of devices that can be returned to 1.9 million.

All owners of the Note 7s will be able to exchange their devices for another Samsung smartphone or receive a refund under the plan approved by the CPSC, the company and agency said.

Customers who exchange the Note 7 for a Samsung device will get a $100 (€90.60) credit, while those opting for an alternative brand will receive $25 credit.

Samsung cut its third-quarter operating profit by $2.3 billion (€2bn) earlier this week after deciding to permanently end production of the troubled smartphone.

The Note 7 devices were overheating and catching fire, even after a recall that was supposed to fix the problem.

“We are committed to doing everything we can to make this right,” said Tim Baxter, president and chief operating officer of Samsung Electronics America.

The announcement almost doubles the number of smartphones subject to the recall. The US consumer agency had announced a voluntary recall of almost 1 million Note 7s last month.

The commission mainly enters into agreements with companies for recalls rather than going to court to compel action.

“The lithium-ion battery in the Galaxy Note7 smartphones can overheat and catch fire, posing serious fire and burn hazard to consumers,” the commission said in a release.

Samsung has reported 23 new cases of incidents in the US since last month’s recall, according to the agency. Out of 96 total incidents, there have been 13 reports of people injured by burns and 47 cases of property damage.

The latest incidents appear to be due to a battery flaw, different from the one that triggered the original recall, a source said.

The recall expansion announcement will not increase the costs to Samsung in its revised earnings estimates, said Song Myung-sup at HI Investment & Securities.

In light of recent cases, we are putting your safety first and have stopped sales/production of the Galaxy Note7. https://t.co/OuGdjk4dTD

— Samsung Mobile (@SamsungMobile) October 13, 2016