Samsung Electronics

Samsung pressed by Hong Kong consumer watchdog to indicate Note 7 exchange and refund policies

This comes after the electronics giant issued a worldwide statement telling users to stop using the flawed device; locals retailers may lose HK$1,000 per phone

PUBLISHED : Tuesday, 11 October, 2016, 3:46pm
UPDATED : Tuesday, 11 October, 2016, 4:40pm

Hong Kong’s consumer watchdog has pressed Samsung Electronics to indicate exchange and refund arrangements for local users after the Seoul-based giant pulled their problematic Galaxy Note 7 from shelves worldwide.

On Tuesday, Samsung issued a statement asking users around the world to “power down and stop using the device”, pending further details about exchanges and refunds. The smartphone has been plagued by a string of battery explosions since its launch about two months ago.

Samsung Electronics Hong Kong also announced a halt to sales in the city and Macau.

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The Consumer Council said it received about 160 complaints of the Galaxy Note 7 to date. It will release an updated number of cases by end Tuesday.

Parallel traders of electronic products in Sin Tat Plaza said Samsung’s decision to halt sales is not unexpected and the market has lost interest in trading its flagship device since the first reported incident.

The owner of Like at Sin Tat Plaza in Mong Kok, who identified himself as Peter, said he was no longer carrying the Galaxy Note 7.

According to him, the price of the device is now about HK$5,500, but no one is buying.

“For those who still have stock, they will probably lose HK$1,000 per device,” he said.

Owner of G-World Mobile at Sin Tat Plaza, Lau Chi-kong, who only had one Galaxy Note 7 left in stock, said traders are still unlikely to slash prices at this point.

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Some traders said there might be retailers offering parallel-imported Galaxy Note 7s from Taiwan and Singapore for sale, and consumers who were unaware of the device’s problems might buy them.

Analysts said Samsung suffered more than US$600 million (HK$4.6 billion) in estimated losses worldwide – from plunging sales and a consumer confidence crisis, given it failed to swiftly fix the product’s flaws.

Meanwhile retailers such as Fortress and Broadway in Mong Kok have removed posters of the Galaxy Note 7 and ceased sales. This is despite the fact that some Galaxy Note 7 models are still on display at Broadway.

Fortress confirmed that they are no longer selling the product, while PCCW said they stopped selling the smartphone on Tuesday, and will arrange refunds or exchanges for customers upon request.