Samsung has agreed with Chinese company BOE to supply OLED displays for its next series smartphones, according to a report from South Korea Galaxy M. The move appears to be part of its effort to reduce production costs to maintain its position as the global smartphone number one.
A report by koreatimes.co.kr mentions that Samsung will use OLED panels from BOE in smartphones Galaxy M, which should arrive sometime in the second half of this year. It will be the first time the tech giant will buy OLED panels from an increasingly ambitious display manufacturer. However, this is not their first collaboration - Samsung has previously used the Chinese company's LCD displays in its phones.
Samsung, or more precisely its Samsung Display division, remains the world's largest manufacturer of mobile OLED panels. Understandably, it charges premium prices for its products. Manufacturers like BOE have been trying to increase their market share lately, so they offer their products at more competitive prices.
Samsung can benefit from the market dynamics created by its subsidiary. By using cheaper OLED displays from China, it can be used in smartphones Galaxy M, which supplies the market in large volumes, to increase the margin while keeping their prices low.
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