Samsung's next cost-cutting measure could hit its own Display arm

Rising memory prices are pushing manufacturers to think outside the box, and Samsung appears to be adjusting its supply chain as a cost-cutting measure.

Reports say Samsung’s mobile division (MX) is partnering with a different display supplier for select upcoming low and mid-range Galaxy phones.

The Galaxy A57 is mentioned by name, while future Fan Edition (FE) models are said to use panels from CSOT instead of Samsung Display.

The Galaxy S26 FE hasn’t been confirmed, and there’s no solid evidence it’s in production. However, whichever FE models Samsung plans to equip with CSOT panels could enter production as early as next month, says this new report.

Samsung is expected to purchase around 15 million OLED panels from CSOT for its budget and mid-range devices. Industry estimates suggest these panels could cost about 20% less than those from Samsung Display.

Unlike memory, where pricing leaves little room for negotiation, the display market is currently more flexible.

Interestingly, some industry watchers believe that cost-cutting may not be the main driver behind Samsung's decision. Instead, the mobile division could be aiming to diversify its supply chain for other reason. And in other news, the Galaxy A57 may suffer a price increase in some markets after all. Only time will tell.

Regardless, the move by the MX division isn’t universally supported within Samsung. Korean media reports say Samsung Display is unhappy with the shift. Samsung Display and CSOT are essentially rivals, and the Display arm isn't thrilled that it potentially lost 15 million OLED orders to the competition.