Samsung promises suppliers compensation for scrapped Galaxy Note7

Samsung on Tuesday told component suppliers that they would receive compensation after the leading smartphone manufacturer ceased production of its Galaxy Note7 model, following cases of the devices catching fire.

"Even though we aren't able to disclose the exact number of suppliers, the compensation will cover all component suppliers, regardless of location, that have provided components for the Galaxy Note7," a spokesman for the South Korean firm said.

South Korean news agency Yonhap reported that around 70 of the smartphone manufacturer's partners could expect compensation, placing the estimated cost of financial repayments at 300 billion won (265.9 million dollars).

Industry observers fear that Samsung's move to pull the 940-dollar device, which was aimed at the premium end of the market, could negatively impact the country's economy.

The company has forecast losses of approximately 1 trillion won for the first quarter of 2017 as a result of the debacle.

It scrapped production of the phone last week following multiple reports of it smoking, making popping noises and catching fire - even after repairs to make the devices safe.

Last update: Tue, 18/10/2016 - 13:56
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