According to the Korean media, Samsung is sourcing the battery packs for the Galaxy Z Fold 4 and Galaxy Z Flip 4 from three different suppliers. The company’s in-house firm Samsung SDI is understandably one of them. Additionally, it is also shipping the new foldables with batteries from its compatriot LG Energy Solution and Chinese firm Amperex Technology Limited (ATL).
Samsung to use a third-party battery in its foldable devices for the first time
Reports of Samsung using batteries from LG and ATL in the upcoming foldables are not new, though. We have been hearing about this as early as April. We now have confirmation of those reports. This would be the first time a Galaxy foldable would feature third-party batteries. All previous models included battery packs from Samsung SDI. This would also be the first time a Samsung smartphone would be using batteries made by three different companies. The Korean behemoth is diversifying the supply chain to lower manufacturing costs. Having multiple suppliers for the same component reduces the price as the suppliers compete to get larger orders. While the share of each firm is not known, this diversification may have helped Samsung achieve greater cost efficiency. Batteries reportedly account for about five percent of a smartphone’s manufacturing cost. This ratio may be higher for foldable devices as they pack two different battery units. So any cost reduction would be incredibly crucial. This may go a long way in determining the final price of the foldables. The global inflation crisis has made people more price-conscious than ever. Additionally, having multiple suppliers also ensures a stable supply of components. Considering the COVID-19 lockdowns-induced logistic disruptions in China, Samsung wouldn’t want to rely solely on firms from the country, such as ATL. It is worth mentioning here that ATL was the supplier of batteries for Samsung’s Galaxy Note 7 back in 2016, infamous for the numerous blast and fire incidents. The Korean giant blamed the battery maker for the disaster. But it has since left the past behind and resumed ties with the firm. ATL also supplies batteries for other Samsung smartphones, including flagships.
