SINGAPORE - Samsung Galaxy Note7 owners who swop their scrapped phones for the S7 edge will receive a $250 cheque, Samsung said on Tuesday (Oct 18) as the company fights to keep customers.

Those who want a refund will get back $1,168, which is the retail price of the Note7 launched just two months ago. The Samsung Galaxy S7 edge, another flaship device, retails for $1,098.

The two exchange options will apply to customers who bought the Note7 at full price from retailers, and those who paid a subsidised rate for it after signing a two-year service contract with local telcos Singtel, StarHub and M1. Customers' telco contracts will continue undisrupted.

On Oct 11, Samsung warned customers to stop using the Note7 due to unresolved fire concerns, with an unprecedented decision to scrap the phone.

Customers can indicate their preference on Samsung's website (www.samsung.com/sg/note7exchange) from Oct 26.

Customers will be asked for their home address and details so that their Note7 can be picked up, and a refund or a replacement Galaxy S7 edge delivered.

In the United States, Samsung is giving customers a US$100 (S$139) bill credit if they switch to another Samsung device. If they leave the brand by asking for a refund or switch to another brand of device, they get a smaller bill credit of US$25 on their next purchase.

Last month (September), Samsung recalled some 2.5 million handsets worldwide, including tens of thousands of units in Singapore, and issued replacement Note7 devices.

There were reports that some units had caught fire and exploded, and the problem was initially thought to have been a battery fault. But the problem persisted even with the replacement sets were issued, with one incident of a replacement phone emitting smoke and causing passengers on a Southwest Airlines flight in Louisville on Oct 5 to be evacuated.

This resulted in Samsung's decision to pull the plug on its flagship device barely two months after its launch.