The massive recall of one of Samsung's flagship devices is an embarrassing setback for the world's biggest selling smartphone maker. The Note 7 was unveiled just a month ago, and big rival Apple (AAPL, Tech30) is expected to show off its new smartphone next week.
Samsung said devices in China don't appear to be affected because it used another battery supplier. But it was unclear if models sold in China would nonetheless be recalled.
The company originally said it would take about two weeks to prepare the recall, but later announced Note 7 users in the U.S. can exchange their device for a Galaxy S7 or Galaxy S7 Edge, starting next week. It will also refund the cost of Note 7-specific accessories.
Samsung is giving Note 7 users a $25 gift card or bill credit for the inconvenience.
More details about how the recall program will work will be announced shortly, the company said. In the meantime, people worried about their batteries should contact their nearest Samsung service center.
Target and Amazon said Friday that it has stopped selling the phone and is working with Samsung to replace the devices already sold in stores and online. Amazon and Best Buy have also said they are no longer selling the Note 7. Best Buy customers can return or exchange the phone if they already bought one.
U.S. mobile carriers AT&T, Verizon, T-Mobile and Sprint have suspended sales. Meanwhile, Sprint is offering up similar devices for customers to use during the recall process.
South Korean news agency Yonhap had previously reported that there have been five claims around the world of Note 7s catching fire while charging. Unverified photos posted on social media showed charred devices. (CNN money)
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