Samsung announced a sliding-scale of financial incentives, up to $100, to US customers who exchange their Galaxy Note 7, the latest in the effort to remove the phone from consumer hands.
Samsung said in a statement that it will provide 100,000 won ($89) in gifts, including a 30,000-won coupon and a 70,000-won assistance for phone charges, if Note 7 owners replace their phones with Samsung products. This looks like just a small drop in the bucket next to the company's $70 billion pile of cash, but the damage done to its reputation may be harder to deal with.
About 2.5 million Note 7s were recalled last month after reports some had caught fire because of faulty lithium batteries.
Samsung is struggling to contain fallout from the Note 7 phones, which were overheating and catching fire even after a recall to fix the problem.
Company stock declined 8 percent since the start of the week, after Samsung announced its troubled Galaxy Note 7 will end production and be pulled from the market.
Samsung's second Galaxy Note 7 recall is now official, and the company is finally comfortable using the word "recall" to describe what's currently happening with the phablet.
"Because consumers' safety remains our top priority, Samsung will ask all carrier and retail partners globally to stop sales and exchanges of the Galaxy Note7", the company said in a statement. Customers who exchange the Note 7 for a Samsung device will get a $100 credit, while those opting for an alternative brand will receive $25 credit.
When replacement phones also started to combust, the company eventually made a decision to kill off the Note 7 for good. There are also rumours that Samsung Group could remove him from his position following the fiasco. At first, Samsung said a minor manufacturing error in the batteries for the Note 7 was causing the phones to overheat. The Galaxy Note 7 is unlikely to return to stores, as Samsung already stopped production and is looking to discontinue the model.