NEW YORK (TheStreet) -- Samsung (SSNLF) will recover from the Galaxy Note 7 smartphone recall, T-Mobile (TMUS) CEO John Legere said on CNBC's "Squawk Alley" on Monday morning. Samsung ended production of the device earlier this month after both the original version and the replacement version were overheating or exploding.
But Samsung will be fine because it responded in the right way, by stopping production and offering Note 7 owners a free replacement phone or refund, Legere claimed. "First of all, they'll survive and thrive and mainly because they did the right thing. If anybody else hasn't done so, clearly turn the device off, return it for a full refund. Samsung is participating very aggressively," he said.
By putting customer safety first, Samsung will continue to grow its business, Legere added. "The first step toward surviving and thriving this kind of an issue is what they're doing. Take care of the customers no questions asked," he said.
T-Mobile was affected slightly by the fiasco after it stopped selling the Note 7 earlier this month because some customers complained of the replacement version catching on fire. "It caused an equipment revenue issue in the short term for us in Q4 but there's a lot of great options including some of their other devices and then alternative devices. But they'll be fine. They're a great partner and a great company," he concluded.
Before today's opening bell, T-Mobile announced earnings of 27 cents per share, beating analysts' estimates of 21 cents per share. Revenue rose by 17.8% year-over-year to $9.2 billion, but fell short of analysts' estimates of $9.5 billion.
Shares of T-Mobile were surging by 8.55% to $50.74 in early afternoon trading.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates T-Mobile as a Buy with a ratings score of B. This is driven by a few notable strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: TMUS