Samsung Malaysia Electronics (SME) Sdn Bhd will be replacing its troubled Galaxy Note7 model with Samsung Galaxy S7 Edge next week, the company said in a statement today.

Samsung Malaysia said customers can contact the Samsung Malaysia Carelineat 1-800-88-779 for more information before the exchange process takes place.

"Samsung is committed in producing a high quality product and we take serious reports on incidents from our customers," the company said.

"We have carried our investigations and found issues with battery cells. Until Sept 1, a total of 35 cases of batteries catching on fire were reported," it further said.

Samsung announced the recall of 2.5 million Note 7s in early September following numerous reports of the phones catching fire.

“The option of refund or exchange to the Samsung Galaxy S7edge will be made available for the pre-order owners provided that they return their current Samsung Galaxy Note 7 accordingly.

“The preorder owners will expect to be contacted from October 13, 2016 onwards by Samsung Customer Service, related mobile network operators or participating retail partners respectively on the details of the refund or exchange program,” the statement further read.

Samsung has already temporarily halted Note 7 production, a source familiar with the matter said on Monday.

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Before the exploding batteries, Samsung had defied a slowing smartphone market with better-than expected Galaxy sales and successfully capitalized on a lull in demand for new iPhones.