Reported cases of exploding Samsung Note 7 batteries comes just days before Apple is expected to launch the iPhone 7.
Samsung recalled its Galaxy Note 7 smartphones after finding some of its batteries have exploded or caught fire just two weeks after the product's launch.
The company has announced that it will start exchanging the device as soon as next week or users could swap their Galaxy Note 7 for a Galaxy S7 or S7 Edge.
"The US carriers have already halted sales and offered ways for customers who have already purchased the device to get refunds. Now Samsung has announced its own exchange programme, which will provide customers with a new device as soon as next week," The Verge reported.
"In addition, affected customers will receive a $25 credit on their phone bill or a $25 gift card for their troubles. Samsung did not say when the Note 7 will be available for general purchase," the report added.
The recall, the first for the new smartphone though not the first for a battery, comes at a crucial moment in Samsung's mobile business.
Apple is expected to announce its new iPhone next week and Samsung's mobile division was counting on momentum from the Note 7's strong reviews and higher-than-expected demand.
Samsung said it had confirmed 35 instances of Note 7s catching fire or exploding. There have been no reports of injuries related to the problem.
"To date (as of September 1) there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market," said Samsung in a statement.
This summer, Samsung ran into a quality-control issue with another smartphone, a niche model called the Galaxy S7 Active.
Consumer Reports found that the phone didn't live up to its water-resistance promises.
Samsung claims to have identified which smartphones are affected, declaring that 1 in 42,000 units from the 2.5 million Note 7s that the company sold worldwide had defective batteries.
(With Agency Inputs)
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 "IFA 2016, Samsung Galaxy Note 7, Samsung, Business Finance, Industry, Economy, Germany, Internationale Funkausstellung Berlin")
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