Samsung to Pay Note7 Suppliers for Unused Parts
Samsung today said it will pay its component suppliers for any Galaxy Note7 parts they may have already made. The company will also compensate suppliers for in-progress or unfinished parts, as well as any materials those suppliers purchased to manufacture the parts. Further, Samsung will look to give those suppliers orders for future devices to soften the economic impact of cancelling the phone. "Samsung will determine the inventory levels for the partner companies and carry out compensation quickly," said the company. It did not provide details on how much it might spend to compensate its parts suppliers. Samsung already said it expects the cancelled phone to cost it some $5.5 billion in profit between the fourth quarter of 2016 and first quarter of 2017. Samsung was forced to fully cease production of the phone and recall all units after defective batteries led to burns and fires.
Aug 2, 2016
Samsung today announced the Galaxy Note7, its premier smartphone for the year. The device is narrower than last year's model in order to make it easier to hold, and uses a sturdier aluminum frame with symmetric slabs of Gorilla Glass 5 on either side.
Oct 11, 2016
Samsung today pulled the plug on the Galaxy Note7 handset, ostensibly putting an end to the embattled smartphone. Late Monday, the company asked carriers and retail partners to stop sales and exchanges of the phone while it continued its investigation.
Oct 9, 2016
T-Mobile this evening joined AT&T in putting a stop to exchanges, replacements, and sales of the Samsung Galaxy Note7. "While Samsung investigates multiple reports of issues, T-Mobile is temporarily suspending all sales of the new Note7 and exchanges for replacement Note7 devices," said the company.
Sep 3, 2016
Samsung has launched a product exchange program for the Galaxy Note7. It says it has identified the batch of devices impacted by the battery problem and has halted all sales as a precaution.
Jan 22, 2017
Samsung today said problems created during the manufacture of the Galaxy Note7's battery caused the phone to sometimes overheat and burst into flame. The company says two separate battery defects are at fault, but maintains nothing was wrong with the phone itself.