Samsung Electronics may be planning to add one of the rivals of the Display division to its supply chain for high-end Galaxy smartphone models. The mobile division is reportedly discussing a possible collaboration with China's BOE on high-end displays — foldable panels included
Although BOE previously supplied Samsung Electronics with rigid displays for mid-range phones and Galaxy smartwatches, it has yet to join the Korean tech giant's high-end supply chain. This could change, as Samsung is supposedly trying to diversify its list of display partners, says IT Home citing the Korean media.
The report goes further into speculating that BOE may even end up supplying foldable panels not only for the upcoming Galaxy Z Fold 5 and Galaxy Z Flip 5 but also for next year's Z Flip 6 and Fold 6 models. This sounds a bit wishful, seeing how Samsung has yet to test BOE's ability to respect deadlines and meet its quality standards for foldable panels. Samsung may want to test the waters with one generation of foldable devices before signing and agreeing to a long-term commitment. Or is the company desperate to diversify its supply chain?
What could this mean for Samsung Display?
For now, it doesn't seem like Samsung Electronics and BOE have agreed on anything regarding the Korean tech giant's high-end display needs. And as far as foldable displays go, Samsung Electronics has so far only acquired foldable panels from Samsung Display. If the company adds BOE to the supply chain, it could mean fewer sales for the Display arm.
At the same time, Samsung Display is signing up with more partners every year and will reportedly help Google release its first foldable phone called Pixel Fold. So it could be that Samsung Display may have reached its production capacity for foldable panels, and the mobile division is trying to diversify its supply chain to allow the Display arm to honor its contracts with other firms.
In the Apple camp, however, Samsung Display and BOE seem to be fighting over market share, and recent reports suggest that BOE is slowly eating away at Samsung's market share for Apple displays. Some say that BOE may even acquire its first orders for LTPO iPhone panels next year.
Samsung should unveil the Galaxy Z Fold 5 and Z Flip 5 in Q3. For now, the company continues selling the Galaxy Z Fold 4 and Galaxy Z Flip 4 featuring foldable displays developed and manufactured in-house by the Display division.
