To cut costs, Samsung diversifies its foldable battery suppliers.

In around two weeks, Samsung will unveil its fourth-generation foldables. On August 10, the Galaxy Z Fold 4 and Galaxy Z Flip 4 become available. There have been plenty of leaks concerning these devices, but there is always more to learn. We now know who would supply the batteries for the future foldable pair.

The battery packs for the Galaxy Z Fold 4 and Galaxy Z Flip 4 are reportedly coming from three different vendors, according to the Korean media. It makes sense that Samsung SDI, the business’s internal company, is one of them. The new foldables are also being shipped with batteries made by its compatriot LG Energy Solution and the Chinese company Amperex Technology Limited (ATL).

For the first time, Samsung will use a third-party battery in its foldable devices. However, there have long been rumors that Samsung will use batteries made by LG and ATL in its forthcoming foldable devices. Since April, we have been hearing about this. Now those reports have been verified. This would mark the debut of third-party batteries in a Galaxy foldable device. All prior models came with Samsung SDI battery packs.

Advertisement Additionally, this would mark the first time three distinct battery manufacturers had ever collaborated on a Samsung smartphone battery. To cut production costs, the Korean behemoth is diversifying its supplier chain. The price is lowered by having numerous suppliers for the same component as the suppliers compete for larger orders. Although the percentage of each company is unknown, this diversification might have enabled Samsung to cut costs more effectively.

According to reports, batteries cost around 5% of what it costs to make a smartphone. Given that foldable devices contain two distinct battery components, this ratio might be larger for them. Therefore, any cost savings would be quite essential. This might have a significant impact on how much the foldables cost in the end. People are more price vigilant than ever as a result of the worldwide inflation issue.

Furthermore, having several vendors guarantees a consistent supply of components. Given the logistical problems brought on by the COVID-19 lockdowns in China, Samsung wouldn’t want to rely only on local companies like ATL.

Advertisement It is important to note that ATL supplied the Samsung Galaxy Note 7’s batteries in 2016, a year known for its numerous explosion and fire accidents. The Korean juggernaut attributed the mishap to the battery manufacturer. But it has subsequently moved on from the past and reestablished contact with the company. For other Samsung smartphones, including flagship models, ATL also provides batteries.


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