Korean Media: Samsung Smartphones Are Now Also Using Chinese OLED Panels!
On April 19, South Korean media outlet Today's Finance published an article stating that facing pressure from rising component prices, Samsung Electronics is diversifying the display supply chain for its mid-to-low-end smartphones in order to reduce costs.
According to analysis, especially after memory chip prices surged, leading to increased manufacturing expenses, OLED panels have begun to offer cost-saving opportunities.
Industry insiders revealed that Samsung Electronics has decided to procure OLED panels from China’s display manufacturer CSOT (China Star Optoelectronics Technology).
This move aims to secure a more cost-effective alternative to Samsung Display. It is reported that an order of approximately 15 million panels has already been placed.
The panels are expected to be first used in mid-range product lines, such as the Galaxy A series and Fan Edition models.
Therefore, even if future Galaxy Fan Edition devices maintain the same design as current flagship models, they are highly likely to feature different display suppliers.
Industry experts estimate this shift could reduce OLED panel costs by around 20%. However, analysts note that due to the recent sharp rise in semiconductor memory prices, it will be difficult to fully offset overall cost burdens.
It is reported that this recent decision by Samsung Electronics has triggered considerable internal reaction within the company. According to sources, Samsung Display had requested a group-level review of the decision, but was denied—ultimately confirming the adoption of external suppliers.
This move is not merely seen as a simple cost-cutting measure, but also part of a broader strategy for supply chain diversification. The goal is to mitigate future risks related to price volatility or supply disruptions by reducing reliance on specific affiliated companies and ensuring diversified components sourcing.
Meanwhile, growing concerns are mounting over the declining profitability of Samsung Electronics’ mobile business division. Some forecasts suggest the division may incur losses as early as Q3 2026.
As a result, it is expected that Samsung Electronics will further accelerate improvements in its cost structure, including lowering per-unit component costs.
However, the actual difference in display quality when applied to real products remains unconfirmed at this time.
Notably, since Fan Edition models will inevitably be compared with flagship devices, whether changes in user experience will be noticeable is expected to become a key point of attention moving forward.
Original source: toutiao.com/article/1862900166976576/
Disclaimer: The views expressed in this article are solely those of the author.