Samsung may sell refurbished models of the Galaxy Note 7 with smaller batteries in emerging markets according to reports emerging from South Korea.

The Galaxy Note 7 was discontinued by the smartphone-maker after several incidents of the device exploding or catching fire. The company initially recalled the first batch of Note 7s, but the second batch – that containing batteries from a different supplier – also faced similar issues.

The company is now believed to be working on reduced battery capacity from that of the original Note 7's 3,500 mAh and replace it with a smaller one and sell the device in emerging markets like India and Vietnam, Hankyung reported.

Although the core components will be reused, fresh cases would be made for the refurbished models. Samsung is estimated to be holding close to 2.5 million Galaxy Note 7s after using between 20,000 and 30,000 for testing to determine the cause of the battery exploding.

The report pointed out that Samsung was looking to minimise losses from the Note 7 line, by transforming the phone. The tech giant may sell most of these devices at discounted prices just before the launch of the Galaxy Note 8 later this year.

Although there are no confirmed reports of a Galaxy Note 8, rumours suggest that the device may see the light of day by the end-2017. However, the first flagship from Samsung will be the Galaxy S8, which the company may tease at the upcoming Mobile World Congress in Barcelona from 27 February to 2 March.