Samsung has confirmed an Unpacked event for August 10. It goes without saying that the company will be unveiling the Galaxy Z Fold 4 and Galaxy Z Flip 4 at the event. Over the past few weeks, rumors and leaks about the upcoming foldables have been plenty.
The latest report out of South Korea sheds some light on the battery suppliers Samsung has finalized. The company will be sourcing batteries from three suppliers for the new foldable phones.
Cost reductions and supply chain diversification ultimate objectives
Samsung SDI remains one of the suppliers and that's not surprising. It's a division of the Samsung Group that makes batteries. Samsung SDI supplies a significant number of batteries to Samsung Electronics for its products. Batteries made by Samsung SDI for the Galaxy Z Flip 4 have already been leaked online.
Korean rival LG Energy Solution is in the mix as well. It will reportedly be supplying batteries for the Galaxy Z Fold 4 and Z Flip 4 as well. Lastly, China's ATL, a long-time supplier of batteries for Samsung, has been finalized too. This happens to be the first time that Samsung's mobile division is sourcing batteries from three suppliers at once.
Ensuring adequate supplies and achieving greater cost efficiency are the primary reasons why Samsung has opted for three suppliers. The company will be able to improve its profit margins on the devices if the cost is brought down. Batteries are said to account for 5% of the total cost of a smartphone. Since Samsung's foldable phones come have two separate batteries each, the cost ratio is higher compared to conventional smartphones. Cost reductions in this area can thus deliver a significant improvement in margins.
The company also wants to ensure a stable supply chain for this crucial component. Lockdowns and logistical disruptions in China due to COVID19 have impacted supplies. Therefore, a more diversified supply chain will ensure that Samsung is always able to find batteries for its upcoming foldable smartphones.
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