Samsung to offer Note 7 customers $100 not to ditch brand

Electronics giant Samsung is offering $100 to each of its customers who purchased one of its now defunct Galaxy Note 7 models - with the only catch being that they must stick with its brand and accept another Samsung device in exchange.

The South Korean firm admitted defeat with its troubled flagship smartphone this week, after a global recall and various reports of the phones catching fire and exploding.

"As a sign of our appreciation for your patience and loyalty, we are offering up to a $100 bill credit from select carrier or retail outlets if you exchange your Galaxy Note7 for another Samsung smartphone, less any incentive credits already received," Samsung wrote in a statement.

Now it is trying to stem the flow of customers who will no longer trust its brand, by offering the $100 as credit once customers hand in the device.

"Customers' safety remains a top priority and we ask consumers with an original or replacement Galaxy Note7 to power down and take advantage of the remedies available," said president and COO Tim Baxter.

The new offer only applies to the United States at first, as other areas will have their own recall policies in place.

Samsung's troubles have come at an inopportune time, with fierce rivals Apple releasing their latest iPhone, the iPhone 7 and its Plus version, as well as Google's introduction to the market of its new smartphone, the Pixel.