Smartphone titans like Samsung have made efforts to ensure that the DRAM crisis doesn’t adversely affect their ‘day to day’ operations, but these attempts were futile as the Korean giant has been forced to introduce a price hike to the Galaxy S26 series. However, the company is working to ensure that it minimizes additional component cost bumps by moving to a dual-sourcing strategy. Since displays are among the more expensive parts of a smartphone, the base Galaxy S27 could feature panels from Samsung and another manufacturer, but this could lead to quality disparities in the future.
Chinese suppliers could become a suitable alternative for Samsung’s Galaxy S27 series during the DRAM price crunch, with BOE in the company’s crosshairs
Details spotted by ZDNet Korea and reported by ITHome state that a possibility exists where Samsung brings BOE into its supply chain, allowing it to substantially reduce costs for the base Galaxy S27. The Chinese manufacturer is currently part of Apple’s supply chain, but it’s mainly a backup option rather than a firm that customers can rely on, as there have been numerous occasions when BOE has faltered in producing adequate quantities and quality for its customers, mainly Apple.
With Samsung having little flexibility in the matter as memory and storage costs risk the company to increase its smartphone prices drastically, one trade-off of bringing BOE into the fold is that the Galaxy S27 displays could have increased quality differences between the two variants. Even though Samsung has its own panel manufacturing division, it doesn’t sell this part to its smartphone business at a lower cost, which is where BOE potentially comes into play.
Chinese companies have already penetrated Samsung’s supply chain to reduce component costs. For instance, Samsung’s Galaxy A57, which is found under its mid-range lineup, is partially equipped with OLEDs from TCL CSOT. For non-flagship smartphone series, Samsung can afford to make compromises in this segment since these devices are shipped with other trade-offs to generate higher margins.
For the base Galaxy S27, which will be subjected to increased scrutiny and nitpicking because of its higher price, Samsung will be required to hold BOE to a higher standard in developing and manufacturing OLED panels. However, the partnership between the two entities isn’t set in stone right now, so it’s possible that the deal falls apart before anything materializes, so let us keep our fingers crossed for more updates.
About the author: Omar Sohail is a reporter and analyst for Wccftech’s mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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