Samsung is working hard to make sure its Galaxy Note 7 recall debacle doesn’t burn too many bridges — not only with customers but within the industry as well.
The company released a statement to Reuters on October 18th saying that it will compensate component suppliers for unused Note 7 parts that have already been manufactured, materials bought to make parts for the ill-fated device and unfinished components.
Additionally, in consideration of the fact that the suppliers may have expected a substantial ongoing revenue stream from the parts, Samsung also stated that it would consider giving those companies orders for other models of phone.
The company did not say how much it expected to pay out, but said it would “determine the inventory levels for the partner companies and carry out compensation quickly.”
This move was likely spurred on by recent concerns voiced by the South Korean government and the central bank that the Note 7’s early discontinuation could have a significant negative impact on the domestic economy, as many affiliates in South Korea count on Samsung as a key partner.
In an unprecedented move, the Note 7 was permanently discontinued on October 11th after only approximately two months in production, due to battery issues that caused many devices to overheat and combust.
Related: Transport Canada bans Samsung Galaxy Note 7 from all Canadian flights
[source]Reuters[/source]
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