Facing severe cost pressures, Samsung Mobile is reportedly sourcing OLED panels from China Star Optoelectronics Technology (CSOT) for its upcoming Galaxy S26 FE and A57 devices. Internal sources indicate that the company’s memory division is unwilling to provide high-end chips at discounted rates, leaving the mobile division scrambling to maintain profitability.

The move comes as Samsung MX struggles to post an operating margin near 1% this quarter. Measures such as voluntary retirements and restricting business-class travel for executives have failed to fully offset rising costs. By using CSOT panels, Samsung aims to reduce dependence on its in-house Samsung Display panels, which are more expensive, and mitigate the financial strain caused by “chipflation” and global logistics challenges.

Industry analysts view the shift as an indicator of internal friction within Samsung’s corporate structure, highlighting how divisions are increasingly making independent cost-driven decisions. While the strategy may stabilize margins, it signals a shift in the company’s traditional vertical integration approach.

Source: https://wccftech.com/samsung-mobile-now-turning-to-chinese-oled-panels-to-cut-down-on-costs/