Samsung and LG intensify their relationship in the smartphone market. No, no big comeback from LG after the decision to leave the scene, but a collaboration that concerns the supply of batteries. According to an authoritative Korean source (The Elec), Samsung could use LG Energy Solution batteries in the Galaxy A and M line smartphones.
OBJECTIVE: CONTAIN COSTS AND DIVERSIFY SUPPLIERS
It is useful to remember that Samsung already uses LG batteries for high-end models since 2019, but now it could turn to the Korean company also for those dedicated to entry level and medium-range smartphones.
One of the reasons for the decision lies in the willingness to contain production costs of devices that make their low price a strong point. At the same time Samsung it would further differentiate its sources of supply, a very useful circumstance in a market characterized by a persistent supply crisis – just think about the effects of the recent lockdowns in China. LG would thus join Amperex Technology Limited, BYD and Navitatis, the current battery suppliers for Samsung’s entry levels.
LG’s batteries will likely be manufactured at LG Energy Solution’s plant in Nanjing, then shipped to the IMT Semiconductor factory (in Vietnam) for assembly and integration of protection circuits, before reaching the final destination, the factories of Samsung – most of the smartphones of the Asian giant are produced in Vietnam.
The smartphones of the Galaxy A line have made an important contribution to keeping Samsung’s market shares high in recent months, but the company has been forced to revise down the estimates on smartphone production for 2022 due to the infamous mix between pandemic, chip crisis, Ukrainian war and subsequent inflation. Securing stable, cost-effective battery supplies could make an important contribution to driving the sales of this popular line of Samsung devices forward.
