One of the main reasons why each UTG (Ultra Thin Glass) panel for the Galaxy Z Flip costs a whopping $40 appears to have surfaced. Korean media reports that Samsung Display got into an exclusivity agreement with UTG manufacturer SCHOTT that had weakened the company's power to negotiate for a more reasonable price.
It turns out that Samsung Electronics isn't happy about the prices commanded by Samsung Display for its UTG foldable panels either. According to reports, the mobile division ‘repeatedly' approached the display manufacturer and asked for a price reduction, but the company never obtained it. Samsung Electronics dug deeper into the issue and found out about the aforementioned exclusivity deal with SCHOTT, said the Korean media.
The exclusivity contract was reportedly signed for a 3-year period
This may very well be the reason why Samsung Electronics is reportedly looking for ways to develop its own UTG panels. About a month ago, news came to light that the mobile division wants to cut its dependency on Samsung Display for foldable glass, seeking to lower manufacturing prices and, in turn, drop the entry barrier for foldable devices.
This could also mean that until Samsung Electronics find another solution to meet its own UTG demands, the company might continue to struggle to lower the production costs of its foldable phones. This struggle and the issues faced by Samsung Display after signing the exclusivity deal with SCHOTT may also be the reason why Samsung's mobile division is still reportedly undecided as to whether or not it wants to use UTG for the Galaxy Fold 2.
