Samsung says Kenyan Note 7 owners to get cash

Kenyans who may have bought Samsung Galaxy Note 7 handsets abroad will get refunds, the mobile manufacturer has said.

On Tuesday, the Korean mobile manufacturer discontinued the troubled smartphone in the latest chapter of a crisis that has significantly blemished the company’s reputation while hurting its bottom line.

The flagship Galaxy Note 7 was recalled in early September after reports of the phones catching fire.

Although the company had not shipped any of the smartphones to Kenya yet, there have been incidences of Kenyans returning home from overseas with the handsets.

“If there is someone who wants to replace, we will follow the guidelines of the consumer protection authorities and will take care of it,” said Samsung Electronics East Africa vice president, Mr Jung Hyun Park.

At least 100 pre-orders had been made through Samsung’s local suppliers before the recalls in September. Mr Park said that customers who had paid for the phones have got refunds.

The costs associated with the Galaxy Note 7 recall could increase due to the timing of the crisis. Samsung recalled its flagship product just after Apple launched a handset that was to compete in the same consumer category as the Note 7.

Internationally, while Samsung shares have been plummeting, Apple shares have been on the rise. In a statement on Wednesday, the company revised its projected operating profit for July-September 2016 downwards by 33 per cent to $4.7 billion.