As we are all aware that the unpacked event of Galaxy Z Fold 4 and Flip 4 is going to happen on August 10, and the vibes are spread by Samsung house only. Also, there’s a huge rumour about both the devices from the last few weeks and by the time Samsung announces its unveiling date the curiosity of knowing much more about the two most awaiting phones i.e. Galaxy Z Fold 4 and Galaxy Z Flip 4 are at next level.
Now the latest report coming from the manufacturer brings some more info which reveals that Samsung has finalized the battery supplier. And on the basis of this, it is predicted that the company will be sourcing batteries from three suppliers for the new foldable phones.
Supply chain and Cost cutting
We can’t deny the fact that undoubtedly Samsung SDI remains one of the suppliers out of three. And for the one who does not know that it’s a division of the Samsung Group that makes batteries. Being into the battery vertical Samsung SDI maintains a substantial supply of batteries across other units including Samsung Electronics for its products. And also the batteries made by Samsung SDI for the Galaxy Z Flip 4 have already been leaked online recently.
Also the Korean competitor, LG Energy Solution is in the queue as well. They also reportedly be supplying batteries for the foldable series of Galaxy Z Fold 4 and Z Flip 4 as well. Apart from this, the third one is China’s ATL, which is a long-time battery supplier for Samsung has been finalized too. Now, this happens to be the first time that Samsung’s mobile division is sourcing batteries from three suppliers at once. The reason is very clear and it’s to maintain the demand gap.
Another reason is that maintaining adequate supplies and cost efficiency are the primary reasons for choosing three suppliers. On the other hand with this step, the company also want to improve its overall profit margin on the devices. Talking about percentage ratio then batteries are said to account for 5% of the total cost of a smartphone. And because Samsung’s foldable phones come to have two separate batteries each. Therefore the cost ratio is higher compared to conventional smartphones and reducing the cost in this area can deliver a crucial improvement in margins.
Samsung also ensures a stable supply chain for this essential component, whereas lockdowns and logistical disruptions in China due to Covid 19 have impacted the supplies a lot. Therefore to take all these factors into account it’s a way step ahead to match the solution to find batteries for its upcoming foldable smartphones.
