What you need to know
- Samsung is reportedly turning to Chinese supplier CSOT for around 15 million OLED panels, marking a major break from its traditional reliance on Samsung Display.
- CSOT’s panels are at least 20% cheaper, and Samsung needs to offset shrinking margins somewhere.
- Mid-range and budget Galaxy phones will potentially see the biggest shift to third-party panels.
Samsung is in a tricky spot that could affect both the look and price of your next Galaxy phone. Its mobile division, Samsung MX, is reportedly planning to buy OLED panels from outside suppliers, which puts it in direct competition with its sister company, Samsung Display.
This is a major change. For years, Samsung has relied on Samsung Display as a key strength. The company makes some of the best OLED panels and supplies them not only for Galaxy phones but also for competitors like Apple. Now, higher memory costs are forcing Samsung to reconsider its approach.
Your next mid-ranger could get the CSOT screen
A new report from The Elec says Samsung plans to buy about 15 million OLED panels from Chinese company CSOT (China Star Optoelectronics Technology) for its upcoming mid-range phones, like the Galaxy A57 and future Fan Edition (FE) models.
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Samsung could start making these phones with CSOT panels as soon as next month.
Usually, Samsung Display supplies the screens for Galaxy phones. But with memory prices going up, profit margins are getting tighter for everyone. Unlike RAM, Samsung can look for cheaper display options. CSOT’s panels are said to be at least 20% less expensive, so buying 15 million of them could save a lot of money.
Android Central’s Take
I understand why Samsung is making this move, and honestly, I don’t mind. If using cheaper panels leads to better prices or fewer price increases, that’s good for buyers. Still, this isn’t some big innovation—it’s just cost-cutting. There’s always a chance that “good enough” screens become the standard, even if prices don’t drop.
Chinese companies like BOE and TCL CSOT have been quickly improving their OLED technology and offering lower prices than competitors. Now, they can make panels that are good enough for most smartphones, especially those that aren’t top-of-the-line. So, Samsung is thinking about changing its usual supply chain approach.
As expected, Samsung Display isn’t happy about this. The rivalry between Samsung’s mobile division and its display arm has reportedly grown, with Samsung Display trying to stop the change but not succeeding. CSOT is a direct competitor, so losing 15 million orders to them is a big blow.
From a buyer’s perspective, this might not be bad news. If Samsung can cut production costs, those savings could lead to better prices for customers, or at least help the company avoid raising prices again.
Flagship screens stay in-house
Keep in mind, flagship Galaxy phones won’t suddenly stop using Samsung Display panels.
Android Central’s Take
I’ll be paying attention to see if these savings actually reach customers or just boost Samsung’s profits. If Samsung is going to stop relying on its own displays, there should be a solid reason beyond just saving money.
The top models, like the Galaxy S and Z series, will probably keep their high-quality in-house screens, since quality is essential there.
The real changes will likely affect mid-range and budget phones, where saving money is more important than having the very best display.
