Samsung Will Compensate Its Note 7 Component Suppliers

With Samsung killing off the production of the Note 7, safe to say that Samsung aren’t the only ones affected. Obviously Samsung’s partners and suppliers will also be affected because now they are no longer producing components for the phone, which we’re sure that many of them had assumed they would.

However the good news is that Samsung will be generous about it. According to a report from Reuters, Samsung has announced that they do plan on compensating their suppliers. Safe to say that they won’t be compensating them for the amount of phones produced during the Note 7’s product cycle, but they will be compensating them for what they’ve produced so far.

Samsung did not dive into any specific numbers, but they did say, “Samsung will determine the inventory levels for the partner companies and carry out compensation quickly.” Now last we heard, the Note 7’s recall and discontinuation is said to have cost Samsung around $3 billion for this quarter and the next quarter.

Reuters had also estimated that Samsung could have potentially made $17 billion during the Note 7’s product cycle, so with Samsung now compensating their component suppliers, it will just end up making the entire fiasco a lot more expensive, something that Samsung and their investors can’t be too happy about even though it is the right thing to do.

Tyler Lee
Categories: Cellphones
Tags: Galaxy Note 7, Galaxy Note 7 Recall, Samsung