Refurbished Samsung Note 7 phones to be sold after withdrawal due to fire hazard

Samsung is to sell refurbished versions of the Galaxy Note 7 smartphones which it pulled from stores last year because they kept bursting into flames.

Note 7s were permanently scrapped in October following a global recall after the batteries were found to be causing them to self-combust.

Samsung launched an investigation that discovered manufacturing problems in batteries supplied by two different companies - Samsung SDI Co Ltd and Amperex Technology Ltd.

The company and independent researchers found no other problems in the Note 7 devices, raising speculation that Samsung will recoup some of its losses by selling refurbished models.

The time of Samsung's announcement that revamped Note 7s will go back on sale has surprised industry insiders as it comes just days before it launches its new S8 smartphone in the United States.

It will be its first premium phone since the Note 7 fire problems.

The company is under pressure to turn its image around and had previously not commented on its plans to sell refurbished devices.

But in a statement Samsung said: "Regarding the Galaxy Note 7 devices as refurbished phones or rental phones, applicability is dependent upon consultations with regulatory authorities and carriers as well as due consideration of local demand."

South Korea's Electronic Times newspaper reported that Samsung will start selling refurbished Note 7s in its home country in July or August and would aim to sell between 400,000 and 500,000 of them using safe batteries.

However, in response, Samsung said it has not set specifics on refurbished Note 7 sales plans, including what markets and when they would go on sale.

The company added that Note 7s will be equipped with new batteries that have gone through its new rigorous safety testing measures.

It said: "The objective of introducing refurbished devices is solely to reduce and minimise any environmental impact."

The company estimated it lost £4.40bn in profit over three quarters because of the Note 7's problems.

More than three million Note 7s were sold before the phones were withdrawn from the market.

The company also plans to recover and use or sell reusable components such as chips and camera modules and extract rare metals such as copper, gold, nickel and silver from Note 7 devices that are not sold as refurbished products.

Environment rights group Greenpeace and others have lobbied the company to come up with environmentally friendly ways to deal with the recovered Note 7s.