The rising cost of memory chips in the last year or so has forced manufacturers of electronic goods to come up with various strategies to offset the burden, especially smartphone makers that have a portfolio of low-end to mid-range devices. Bumping up the price of more affordable devices could potentially spell trouble. This doesn’t necessarily apply to the high-end smartphones, where manufacturers are more inclined to shift the cost to consumers.
A report from a Korean publication DealSite suggests that Samsung swapped out its homemade OLED panels in some of its mid-range models, including the Galaxy A57, for the Chinese CSOT-made OLEDs. Samsung has reportedly also switched from the KH Vatec, a South Korean hinge supplier for the Galaxy Z series, to the Chinese Huanli for the Galaxy Z Flip7. Some of the ultrawide camera modules on the Galaxy S series are also now Chinese.
In Samsung’s eyes, the reliance on Chinese suppliers is necessary to reduce overall cost and absorb the impact of absurd RAM prices. This way, the Korean tech giant doesn’t have to raise prices for the end consumer.
Some may deem this unacceptable since Korean components are seen as more “high-quality”. But the reality is that Chinese manufacturers have caught up with technology and are offering the same parts at a lower cost.
People familiar with the matter believe that Samsung will become increasingly reliant on Chinese components in the coming months and years, which in turn will affect local suppliers.