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Note7 suppliers to be compensated
SEOUL: Samsung Electronics said Tuesday it would compensate suppliers hit by the decision to scrap its Galaxy Note7 smartphones because of safety fears with exploding
SEOUL: Samsung Electronics said Tuesday it would compensate suppliers hit by the decision to scrap its Galaxy Note7 smartphones because of safety fears with exploding batteries.
The South Korean electronics giant announced a week ago that it was discontinuing the Note7 after a chaotic recall that saw replacement phones also catching fire. Samsung said the affair would cost the company an estimated $5.3 billion in lost profits over the three quarters beginning July.
The crisis also hit its numerous suppliers—who produce everything from camera modules to ca sings—with their losses estimated at up to $1.7 billion.
“We will offer full compensation for remaining inventories of Note7 components among our suppliers,” the firm said in a statement. “We feel sorry for causing concern among suppliers.”
