Key Takeaways
1. Samsung is shifting to more affordable OLED screens from CSOT, a Chinese manufacturer, instead of producing them in-house.
2. The CSOT OLED panels are 20% cheaper than Samsung’s usual displays, helping to reduce overall manufacturing costs.
3. The rising prices of memory and processing chips have made cost-cutting essential for Samsung’s midrange models.
4. Other smartphone manufacturers have raised prices, but Samsung is focusing on maintaining competitive pricing for its devices.
5. Samsung has ordered at least 15 million OLED panels from CSOT for future Galaxy A57 and Galaxy S26 Fan Edition models.
Samsung is shifting its focus to more affordable OLED screens for its smartphones, moving away from producing them in-house. Instead, they are opting for displays manufactured by CSOT, a lesser-known Chinese company.
Cost Efficiency
The OLED panels sourced from China Star (CSOT) come at a price that is 20% lower than the ones Samsung normally makes for the Galaxy A and Fan Edition series. This strategic move aims to counteract the rising costs of memory and processing chips, which have surged dramatically in just a few months. For instance, the Crucial 64GB DDR5 RAM kit is now available for $580 on Amazon, although its price has doubled since November.
Market Dynamics
The spike in demand for AI data centers has made RAM and storage memory the priciest components in smartphones, surpassing both the system chip and the display in terms of costs. Several major smartphone manufacturers, such as Oppo, Vivo, and OnePlus, have already increased the prices of their devices in China. However, Samsung’s midrange models are particularly sensitive to price changes, prompting the company to focus on cutting manufacturing expenses instead.
Internal Disputes
Reports indicate that Samsung Display has strongly advocated for its case to the company’s leadership, warning that its revenue would take a hit if it loses its A-series line, especially after losing orders from other manufacturers due to the memory price surge. Unfortunately, their efforts have not yielded any results.
As per industry insiders, Samsung has placed an order for at least 15 million OLED panels from CSOT, with plans to use them in the upcoming Galaxy A57 and Galaxy S26 Fan Edition models. This decision is primarily due to the lower cost of the CSOT displays, which are deemed adequate for Samsung’s midrange offerings.
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