Samsung is trying to reduce the cost of making its smartphones as prices of RAM and memory parts keep increasing. Since memory is expensive and hard to negotiate, the company is looking at other components where it can save money. 

According to information via TheElec, Samsung has decided to buy OLED screens from China Star Optoelectronics Technology (CSOT), a Chinese company. These screens are cheaper than the ones made by its own division, Samsung Display. Reports say Samsung has ordered around 15 million OLED panels from CSOT.

These cheaper screens will likely be used in mid-range phones like the Galaxy A series and also in Galaxy FE (Fan Edition) models. In the past, Samsung mostly used displays made by Samsung Display, even for its mid-range phones. But now, rising costs are forcing the company to change its strategy.

Source – Samsung Display

The main reason for choosing CSOT is the lower price. Their OLED panels are said to be about 20% cheaper. This helps Samsung balance the increasing cost of memory parts. It also shows that Samsung wants to depend less on its own companies and use more outside suppliers.

However, this decision has caused some tension inside Samsung. Samsung Display was not happy about losing orders and even tried to stop the move, but it did not succeed.

It is still unclear how these cheaper displays will perform. For budget phones, users may not notice much difference. But in FE models, which are often compared to flagship phones, the difference could be more noticeable. Stay tuned for more information.

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