Samsung is reportedly adjusting its supply strategy for smartphone displays, choosing to source panels from external suppliers rather than relying solely on its own display division for certain devices.

According to industry reports from Korea, Samsung Electronics has begun working with CSOT, the display manufacturing arm of TCL, for panels that will be used in upcoming mid-range smartphones. This marks a notable shift, as Samsung has traditionally sourced displays internally from Samsung Display.

The change appears to be driven by cost considerations. Panels produced by CSOT are said to be at least 20 per cent cheaper than those supplied by Samsung Display. By reducing display costs, Samsung is believed to be aiming to balance rising component expenses elsewhere, particularly memory prices, which have been increasing across the industry.

Reports suggest Samsung has placed orders for around 15 million panels from CSOT. These displays are expected to be used in future devices including the Galaxy A57, as well as upcoming Fan Edition models that are scheduled to enter production in April.

The decision has reportedly created internal tension within the broader Samsung group. Samsung Display is said to have opposed the move and attempted to challenge the decision at a higher level within the organisation, although those efforts were ultimately unsuccessful.

The shift highlights how even vertically integrated companies like Samsung are increasingly willing to look outside their own supply chains in order to remain competitive on pricing, particularly in the mid-range smartphone segment where margins are tighter and cost control is critical.