"Samsung Electronics will stop buying screens from Samsung Display for some mid-range devices, instead opting to purchase from CSOT, owned by TCL. CSOT's panels are at least 20% cheaper than Samsung's, and the move is speculated to be aimed at offsetting rising memory costs by lowering other device costs in the mid-range."
"Samsung has allegedly ordered 15 million display panels from CSOT, which will be used in the upcoming Galaxy A57 as well as some unnamed upcoming FE handsets which are scheduled to begin production in April."
"Samsung Display wasn't very happy with this decision made by Samsung Electronics, and even appealed to higher-ups in the group to reverse it, but wasn't successful."
Samsung Electronics has decided to source display panels from CSOT, a TCL-owned company, for mid-range devices rather than continuing to purchase exclusively from Samsung Display. CSOT's panels cost at least 20% less than Samsung's offerings, making them an attractive option for cost reduction. The company has ordered 15 million panels intended for the Galaxy A57 and upcoming FE handsets, with production beginning in April. This diversification strategy aims to offset rising memory costs by reducing expenses in other device components. Samsung Display opposed this decision and appealed to group leadership to reverse it, but the appeal was unsuccessful.
#samsung-supply-chain-diversification #display-panel-sourcing #cost-reduction-strategy #csot-partnership #mid-range-smartphone-manufacturing
Read at GSMArena.com
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