Samsung May Source BOE OLED Panels for Galaxy S Phones in Major Supply Chain Shift for Cost Savings

Samsung is reportedly in talks to source OLED display panels from rival BOE for its flagship Galaxy S series phones to reduce production costs.
Samsung May Source BOE OLED Panels for Galaxy S Phones in Major Supply Chain Shift for Cost Savings

Samsung May Source OLED Panels from Rival BOE for its Galaxy S Phones

This scenario is in line with speculations that Samsung has made a massive shift in its supply chain by potentially enlisting the Chinese company, BOE, to manufacture OLED displays for its top-end Galaxy S series mobile phones. Sources assert that final decisions have not landed yet, but talks between the duo had already gone ahead.

Financial Motivations Drive Potential Partnership

By technological rather than financial factors, this potential shift is driven. Known to manufacture quality OLED screens, the highest quality in the market, it stands to reason that these products are sold at a premium price. On the other hand, it has BUSed a multitude of customers, one of the most renowned being Apple for its iPhones.

As production costs of the smartphones continue increasing under rising pressure in the market, sourcing displays from BOE will be a good option for Samsung, even if it means stepping away from its long-held practice of sourcing components internally, as it offers some savings.

Discussions Follow Settlement of Patent Disputes

These latest meetings held between officials from Samsung Display and BOE are quite important, considering they're following the resolution of a long-standing patent infringement dispute between the two companies, where the earlier claims were against BOE by Samsung. With the settlement of these legal matters, avenues for a future partnership in business have now been opened.

Information Not Confirmed Yet

This currently remains unconfirmed rumors and has not been validated as official by either Samsung or BOE.

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