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Samsung rolls out exchange plan for Galaxy Note 7

A Samsung employee demonstrates underwater use of a Samsung Galaxy Note 7 smartphone during a launch event for the Samsung Galaxy Note 7 at the Hammerstein Ballroom, August 2, 2016 in New York City.

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Samsung Electronics Co Ltd (005930.KS) on Saturday urged users of its Galaxy Note 7 phones to turn in their handsets as soon as possible as part of a recall aimed at limiting the damage caused by the fire-prone devices.

On Saturday, Samsung also made a similar announcement via its official blog, telling owners of its new phablet to power them down and have them replaced via the company’s official global recall program as quickly as possible.

Since then, airlines and air safety agencies around the world have warned passengers against using them on flights.

The Note 7 problems are a major blow to Samsung’s efforts to build on the strong sales of its Galaxy S7 smartphones launched in March.

Samsung confirmed 35 cases of the Galaxy Note 7 catching fire as of September 1, a lot of them occurring while the battery was being charged, and the South Korean firm has announced a global recall of the new device.

“The whole situation over Samsung is becoming more serious and complicated as more state authorities around the world are advising nationals to stop using the Note 7”, said Hwang Min-Sung, analyst at Samsung Securities.

There are about 2.5 million of the waterproof phones.

Notedly, ATL also supplies batteries for Apple’s iPhone series, which means Samsung could face supply restraint if demand soars for the latest iPhone 7 and iPhone 7 Plus. Samsung has said replacement Note 7s will be available in some markets including South Korea and the United States from September 19. There have been at least 35 other reported incidents of the Galaxy Note 7 devices exploding, but this is the first incident of the device injuring someone.

Growing concern over the device prompted air carriers and aviation authorities in countries including the US, Australia, Canada, Japan, Singapore, Indonesia and India to ban the use of the Note 7 on board.

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Samsung now uses batteries made by a number of different companies including its sister Samsung SDI. Sales in China started on September 1.

After faulty batteries led to a global recall of its Galaxy Note 7 smartphones Samsung Electronics will only use batteries made by China's ATL for its replacement devices Yonhap news agency reported