Go to contents

Samsung to fully compensate Galaxy Note7 parts suppliers

Samsung to fully compensate Galaxy Note7 parts suppliers

Posted October. 19, 2016 07:36,   

Updated October. 19, 2016 07:45

한국어

Samsung Electronics has decided to fully compensate component suppliers for the discontinued Galaxy Note7 smartphones.

"We have informed parts suppliers of its compensation plans on Monday,” Samsung said. "Samsung will determine the inventory levels for the partner companies and carry out compensation quickly." There are some 70 primary parts suppliers that have manufactured components for Note7. Samsung estimates total compensation to reach 200 billion won (177 million U.S. dollars) to 300 billion won (266 million dollars).

The world's top smartphone maker will fully pay for unused Note7 parts that have already been manufactured, and compensate suppliers for unfinished components by calculating costs according to how much it has been progressed. It will also pay for materials bought to make Note7 parts suited to the suppliers' unit purchase prices.

Samsung will also actively consider giving them orders for other models to cushion the blow of Note7 discontinuation. In particular, it will devise a support measure so that the suppliers can use Note7 facilities in making other smartphone models.

While there are some 70 primary suppliers, the total number of suppliers including secondary suppliers that deliver parts to primary suppliers and tertiary ones in charge of processing reaches over 350. Samsung said it will examine plans to ensure that primary suppliers swiftly compensate for secondary and tertiary suppliers.



김지현기자 jhk85@donga.com