Samsung to pay suppliers for unused Galaxy Note 7 parts, compensations incoming too


The Galaxy Note 7 saga continues with yet another statement from Samsung that highlights some of its decisions concerning the suppliers providing components for the recently recalled phablet.

Since Samsung was forced to recall the Galaxy Note 7 and permanently discontinued the smartphone, many suppliers have been left with fairly sizeable components stocks, which can't be used for something else.

On top of that, the South Korean company hasn't determined the cause of Galaxy Note 7 explosions, so most of these parts are useless since one of them could be at fault for the issues Samsung has confronted with in the last couple of months.

But the handset maker announced it will continue to pay all suppliers for unused Galaxy Note 7 parts. Moreover, Samsung announced that it will offer compensations for these unfinished components and pay for all materials that suppliers needed to make Note 7 parts.



Also, the South Korean company is considering giving these suppliers additional orders for other smartphones to limit the losses they might had to suffer due to the Galaxy Note 7 discontinued production.

Samsung's decision comes after the South Korean government expressed concerns about the impact that the Galaxy Note 7 fiasco might have on the country's economy, especially that some of the companies that produce parts for Samsung are based in this country.

The handset maker has decided to ramp up the production of Galaxy S7 and Galaxy S7 edge phones to supplement the demand for Galaxy Note 7 units, but also to offer them as replacements to those who choose to continue using Samsung smartphones.

The suppliers that still stock Galaxy Note 7 unused parts might be offered new contracts for Galaxy S7 components to help Samsung increase production.

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