By Lee Min-hyung
Shares of Samsung Electronics are showing signs of recovery after the firm started a global recall of Galaxy Note 7 handsets because of its battery problem.
On Sept. 12, shares of the nation's leading electronics firm nosedived to 1,465 million won ($1,327), the lowest since Aug. 27 in 2012. A faulty battery in some handsets that caught fire while charging was attributed to the decline in the stock price.
But its share price began and continued to rise this week as the firm started its official Note 7 exchange program. With new handsets in stock, the company started to exchange recalled Note 7 handsets with new ones here, with the firm beginning the Note 7 recall program in the United States, Wednesday.
In Korea, more than 100,000 Note 7 users replaced their devices with new ones as of Thursday, and only four percent of recalled Note 7 users cancelled their orders.
"We are in talks with local mobile carriers about offering a discount of 30,000 won to Note 7 users for their mobile charges for October as part of our compensation for causing inconvenience to our customers," said a Samsung Electronics official.
"Samsung Electronics plans to resume sales of the new Note 7 handsets beginning next Wednesday, while making an all-out effort to help customers replace the recalled devices with new ones," said the official.
The company also decided to extend the deadline to get a refund until the end of this month from Sept. 19, citing the three-day Chuseok holiday last week when retail stores were not open.
On Friday, Samsung Electronics America also issued a statement that half of all recalled Note 7 smartphones sold in the U.S. have so far been exchanged. Some 90 percent of Galaxy Note 7 owners have been opting to receive the new Note 7 since it became available on Sept. 21 there, according to the U.S. subsidiary of Samsung.
Samsung Electronics is limiting the recalled Note 7 battery to a 60 percent charge, as part of a makeshift measure to prevent further explosions.
An industry source said: "Samsung Electronics seems to have capped the battery charge and decided to offer the mobile fee compensation in a move to speed up the recall."
"But weaker-than-expected responses for Apple's iPhone 7 and its issue about a hissing sound may be a boon for Samsung," he said. "Despite the controversy, only four percent of the recalled Note 7 owners decided to get a refund, which shows customers are still loyal to Samsung handsets."
Shares of Samsung Electronics are showing signs of recovery after the firm started a global recall of Galaxy Note 7 handsets because of its battery problem.
On Sept. 12, shares of the nation's leading electronics firm nosedived to 1,465 million won ($1,327), the lowest since Aug. 27 in 2012. A faulty battery in some handsets that caught fire while charging was attributed to the decline in the stock price.
But its share price began and continued to rise this week as the firm started its official Note 7 exchange program. With new handsets in stock, the company started to exchange recalled Note 7 handsets with new ones here, with the firm beginning the Note 7 recall program in the United States, Wednesday.
In Korea, more than 100,000 Note 7 users replaced their devices with new ones as of Thursday, and only four percent of recalled Note 7 users cancelled their orders.
"We are in talks with local mobile carriers about offering a discount of 30,000 won to Note 7 users for their mobile charges for October as part of our compensation for causing inconvenience to our customers," said a Samsung Electronics official.
"Samsung Electronics plans to resume sales of the new Note 7 handsets beginning next Wednesday, while making an all-out effort to help customers replace the recalled devices with new ones," said the official.
The company also decided to extend the deadline to get a refund until the end of this month from Sept. 19, citing the three-day Chuseok holiday last week when retail stores were not open.
On Friday, Samsung Electronics America also issued a statement that half of all recalled Note 7 smartphones sold in the U.S. have so far been exchanged. Some 90 percent of Galaxy Note 7 owners have been opting to receive the new Note 7 since it became available on Sept. 21 there, according to the U.S. subsidiary of Samsung.
Samsung Electronics is limiting the recalled Note 7 battery to a 60 percent charge, as part of a makeshift measure to prevent further explosions.
An industry source said: "Samsung Electronics seems to have capped the battery charge and decided to offer the mobile fee compensation in a move to speed up the recall."
"But weaker-than-expected responses for Apple's iPhone 7 and its issue about a hissing sound may be a boon for Samsung," he said. "Despite the controversy, only four percent of the recalled Note 7 owners decided to get a refund, which shows customers are still loyal to Samsung handsets."
