Technology Samsung Electronics Limited Set To Compensate Suppliers After The Downfall Of Galaxy Note 7

Samsung Electronics Limited Set To Compensate Suppliers After The Downfall Of Galaxy Note 7

Published By Steve Kessler at October 19, 2016 10:00 am

Earlier, Samsung Electronics. Co. Ltd. (OTCMKTS:SSNLF) decided to cut its losses by officially discontinuing its highly troublesome Galaxy Note 7. The South Korean smartphone giant might have suffered substantial financial losses due to its Galaxy Note 7, but that has not stopped it from compensating suppliers for its fallen flagship device.

Interestingly, Samsung has confirmed that it will pay suppliers for both manufactured and unfinished components of the Galaxy Note 7. The company has reassured its key suppliers that they will be fully paid for manufactured parts of the discontinued device, whereas the suppliers for any unfinished components of the device will also be duly compensated.

Samsung states that it intends on paying its partner suppliers as soon as possible after the process of checking inventory levels of the Galaxy Note 7 is completed. This indicates that the tech giant is currently in a very critical position and does not want to risk upsetting its leading suppliers.

Furthermore, it has been revealed that the battery testing of the Galaxy Note 7 was performed internally by Samsung itself which is a highly unusual strategy to apply in the tech world. A majority of smartphone giants prefer employing third-party companies to test the battery performance of upcoming devices, so it 's hard to process why Samsung would take such a laid-back approach with its flagship smartphone.

Samsung might be trying to gain a head start against its main rivals by rushing the production of its Galaxy Note 7 which is probably why the company made such a devastating compromise in quality. This should serve as a valuable lesson for the company as it prepares to roll out more devices and tries to make for the losses.