In a bid to retain Galaxy Note 7 users, Samsung has announced that those who exchange the faulty phone for a Galaxy S7 will get its 2017 flagship phones at half the price. The offer is only limited to South Korea and valid on upgrade programmes only.

The Korean smartphone maker who wants to retain its Galaxy user base in South Korea issued a statement saying customers who trade-in their Note 7 phone for either a Galaxy S7 or S7 Edge can trade it for a Galaxy S8 or Note 8 smartphone next year. While switching to the new phone users will need to pay only half the price of the Galaxy S7.

The latest move comes shortly after some analysts predicted that Galaxy Note 7 users affected by the mammoth recall may switch to Apple's iPhone 7 or 7 Plus. By offering its next flagship at half the price Samsung is trying to convince its users to have some patience until they come out with their 2017 flagship.

It would appear the announcement has gone some way to pour water on rumours that the company will end the Note series altogether. It was reported that Samsung would be looking to focus solely on one flagship smartphone in 2017 (the Galaxy S8 only) but as yet there has been no official confirmation from the company the Note has seen its final chapter.

Samsung has begun to habitually unveil its new flagship phone at Mobile World Congress and while all eyes are on the February event, there have been whispers that we may see the Galaxy S8 earlier in a bid to make up lost ground on the Note 7.

Meanwhile, to recuperate from its losses over the Galaxy Note 7's failure — expected to cost the company an estimated $2.3bn (£1.9bn) — Samsung has started aggressively marketing the S7 range. It is offering financial incentives amounting to $88 to affected Galaxy Note 7 customers in South Korea in addition to refunds or exchanges.