Samsung is reportedly set to use lower-cost OLED displays from a Chinese manufacturer for some of its upcoming Galaxy models, marking a significant shift in its sourcing strategy to tackle rising component costs. After years of relying predominantly on its own Samsung Display panels-even for mid-range phones-the company’s Mobile Experience division has placed an order for approximately 15 million panels from China Star Optoelectronics Technology (CSOT). These displays are expected to feature on the Galaxy A57 and the next Fan Edition model, potentially the Galaxy S26 FE.
The primary driver behind this change is cost savings. Industry insiders reveal that CSOT’s panels are priced at least 20% lower than Samsung Display’s equivalents. Given the ballooning memory prices affecting smartphone makers-including heavyweights like Oppo and Vivo-Samsung’s move reflects the pressures even the largest players face in balancing quality, cost, and supply-chain complications.
For Samsung, which has long been vertically integrated in component manufacturing, outsourcing a key feature like the display to an external Chinese supplier signals a notable departure. Samsung Display reportedly contested the decision internally but could not overturn it amid a smartphone market expected to contract by about 13% this year, making cost reductions a frontline priority.
Despite concerns that shifting away from its homegrown panels might affect screen quality, Samsung’s Mobile Experience division is committed to maintaining rigorous quality control standards during the transition. However, consumers are unlikely to see immediate price drops; leaked information suggests that the Galaxy A57 will still launch with a price increase, compounding frustrations over surging smartphone costs.
This development highlights the broader challenge for flagship and midrange smartphones in 2024, where component inflation and tightening margins are prompting manufacturers to rethink sourcing strategies. Samsung’s choice to adopt Chinese OLED panels may pre-empt similar moves by other smartphone makers aiming for competitive pricing amid a shrinking market.