Samsung Considers Replacing Key Component in Galaxy S27 to Cut Costs
Rumors are starting to increase about the Samsung Galaxy S27 series, even though its launch is still months away.
After reports about the series coming in four models: Galaxy S27, Galaxy S27 Plus, Galaxy S27 Pro, and Galaxy S27 Ultra, a new report revealed that Samsung is considering changing one of the phone's key components to reduce production costs.
Replacing a chip responsible for screen operation
According to a report by ZDNet Korea, Samsung MX, the unit responsible for smartphones, is considering replacing the DDI (Display Driver IC) chips used in the Galaxy S27 and Galaxy S27 Plus with chips from external companies, instead of relying on chips developed by Samsung's System LSI unit.
The DDI chip acts as the link between the phone's processor and the screen, as it translates data from the processor and controls image display details such as colors, brightness, and refresh rates, making it an essential element of the screen experience even though it is invisible to the user.
As for the Galaxy S27 Ultra and Galaxy S27 Pro models, they are expected to continue using internal DDI chips produced by Samsung.
Why is Samsung considering this change?
The report indicates that the main reason is the rising cost of manufacturing smartphones, amid the significant increase in prices of memory components such as DRAM, HBM, and NAND.
This increase came as a result of growing demand for these chips due to the artificial intelligence boom, against limited supply, leading to price increases and pressure on profit margins for phone companies, including Samsung.
Therefore, the company is seeking to diversify component suppliers and reduce production costs without affecting the quality of the final product.
Companies nominated to supply the chips
According to the report, Samsung is evaluating several companies to supply DDI chips, most notably:
- Anapass.
- DB Global Chip.
- Wonik D2I.
- Novatek (Taiwanese).
Samsung will compare the performance and quality of these chips with its internal solutions before making a final decision on adopting any of them.
Samsung is not alone
Samsung is not the only one facing pressure from rising component costs, as reports indicate that the Google Pixel 11 series may see a price increase of up to about $100 compared to the previous generation.
Apple CEO Tim Cook also recently hinted that the company can no longer delay raising the prices of its products, which reinforces expectations of price increases for the iPhone 18 series upon its launch.
Will Galaxy S27 screen quality decline?
Relying on external suppliers may raise concerns about the quality of Galaxy phone screens, which are among Samsung's strongest points.
But the report confirms that the company will not adopt any new supplier before conducting rigorous tests to ensure performance and quality match its current standards.
Samsung also recently canceled plans to use OLED screens from BOE in future Galaxy phones, a step reflecting its adherence to quality standards, especially since BOE previously failed to win a contract to supply screens for the Galaxy S21 series due to performance and quality concerns.
Accordingly, it seems that any cost-cutting step in the Galaxy S27 series will be carefully calculated, while maintaining the screen quality level that Samsung's flagship phones are known for.
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Original source: Al Arabiya
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