A global recall of Samsung Electronics Co.'s Galaxy Note 7
smartphone, whose batteries in some cases caught fire, rolled out
in earnest around the world, amid questions about whether Samsung
can meet demand for the replacement devices.
In the U.S., the company said it would have about 500,000 Galaxy
Note 7 devices on hand for Wednesday, the first day in which
consumers could pick up a replacement device.
Samsung is giving consumers the option of trading in their
original Galaxy Note 7 phone for another handset.
When Samsung announced the recall of 1 million of the
top-of-the-line handsets last week in the U.S. following explosions
caused by faulty lithium-ion batteries, the company said consumers
could get a replacement phone no later than Wednesday, according to
a company statement.
In Australia, where Samsung recalled about 51,000 devices, the
South Korean smartphone giant said Wednesday that the replacement
devices had all arrived in the country. Phone companies and
retailers have already contacted, or will soon contact, customers
who have already decided to get a new device to coordinate delivery
or pickup, Samsung said.
Samsung also said it would release an automatic update on
Wednesday night for customers who were still carrying old Galaxy
Note 7s in Australia, which would limit the maximum charge on the
phone's battery to 60%. The software update was initially only
available in South Korea.
Samsung said that it hoped the update would "further encourage
those who haven't sought to replace their Galaxy Note 7 to do so
immediately."
For customers who receive a new Galaxy Note 7, another update
will include a green battery icon to identify it as a new device
that doesn't have the battery issue.
In Samsung's home market of South Korea, where the recall began
on Monday, there hasn't been a stampede of customers seeking
trade-ins or full refunds, which were being offered for a limited
time.
At a downtown Seoul store operated by carrier KT Corp., a store
manager said that none of the more than 20 customers who purchased
a Galaxy Note 7 from his branch had requested a refund. Instead,
the store had received about six more preorders since Samsung
announced the smartphone recall on Sept. 2, he said.
"There isn't much difference compared to before the recall took
place," he said.
One man who showed up to exchange his Galaxy Note 7 for a
refurbished model said: "It's bothersome to come back to the
store."
After supplying his phone number and other personal details, the
customer walked out with a new phone, complete with new earphones
and a charger.
The store manager said he let customers leave the store with
both their old and new Galaxy Note 7 phones if they had to transfer
big loads of data. Customers have to return the old device in three
days, he said, adding that retailers were advised to turn in all
returned devices to Samsung stores by Sept. 30.
At a nearby store for carrier SK Telecom Co., display tables for
the Galaxy Note 7 smartphones at carrier stores laid bare. An
employee said display devices would be in place starting next
Wednesday, when new, fixed smartphones are back on sale to the
general public.
In the U.S., the company has said it was moving as quickly as
possible to ensure that it could keep up with potential demand for
trade-in devices.
Samsung declined to say when the remaining devices will be
available.
"We are delivering as promised and moving quickly to educate
consumers about the recall and make new Note 7s available," said
Tim Baxter, president of Samsung Electronics America.
Samsung, working with wireless carriers and retailers, initiated
a formal exchange program in conjunction with U.S. safety
authorities last Thursday that allowed customers to receive a new
Note 7, a refund or a different Samsung phone. Customers had
returned 130,000 affected devices before the formal recall
launched, the company said.
Samsung first instructed consumers to stop using the new Galaxy
Note 7 three weeks ago. The recall has been marred by
miscommunication ever since. A longtime Samsung customer, Eric
Myers, said he tried exchanging his recalled Note 7 for another
model at a Verizon store in Vallejo, Calif., late last week, but
was turned away because he didn't have the original box or
adapter.
"They sent me home with a phone that could potentially blow up,"
Mr. Myers, 25 years old, said.
A Verizon spokeswoman said consumers should be able to return
the phones even without the box or accessories.
Write to Eun-Young Jeong at eun-young.jeong@wsj.com, Mike
Cherney at mike.cherney@wsj.com and Trisha Thadani at
trisha.thadani@WSJ.com
(END) Dow Jones Newswires
September 21, 2016 08:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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