Same problem here
I started a thread before, but found out it could be a software problem as a lot of demo units' compasses don't work all the time.
S4 has this problem too.
I have the N900W8 device, if that makes a difference.
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Hi, nicholaschum.
I've the same problem. Mi phone is a N9005 (europe free note 3).
I agree that is a software problem, as if you calibrate the compass sensor (*#0*#) it runs without problem until I restart the phone.
I've also tested several demo units at a samsung store and all of them (galaxy s4, note 3, s4 mini) presented the same problem.
The technical service guy told me that they can change the motherboard of the phone, but I doubt that itgonna fix the problem.
There is a lot of threads, here on XDA, but also in other forums reportinf the same problem on several samsung devices...but unfortunately without solutions.
I'm very pessimistic about this problem, due to that we're more concerned about getting new versions of android instead of get this kind of issues fixed.
Sorry for my english!