In South Korea, Samsung offers incentives for Galaxy Note 7 customers to stay with Samsung
While we don't expect Samsung's market share to drop sharply, the company still has to contend with an exodus of consumers who feel as though they can't trust the brand anymore. Already, we are seeing posts in the Apple sub-reddit page from Galaxy Note 7 owners who are switching to the Apple iPhone 7 or Apple iPhone 7 Plus. One analyst sees Apple adding an additional 8 million in iPhone sales this year from the Galaxy Note 7 issue. As a result, Samsung is giving financial incentives to those who keep it in the family by exchanging their Galaxy Note 7 for a Samsung Galaxy S7 or Samsung Galaxy S7 edge.
In its home country of South Korea, Samsung is offering a coupon worth the equivalent of $30 USD to those who return their Galaxy Note 7 back to the manufacturer. If the Galaxy Note 7 is exchanged for another high-end Samsung phone, the consumer is given another coupon valued at the equivalent of $61.25 USD.
Yesterday, Samsung announced that its Q3 profit forecast will decline by $2.3 billion to cover its financial exposure of the discontinuation of the model. That announcement has helped stabilize Samsung's shares, which are up 1.4% on Thursday.