Samsung Thins Out Camera Suppliers
Samsung Electronics 005930.KS) has changed suppliers for next year’s Galaxy Z Fold 5, and seems to be eliminating smaller level suppliers for the Galaxy S flagship line, as it moves more camera business to its affiliate Samsung Electro-mechanics (SEMES) (009140.KS). For those high-end models, Samsung has eliminated Partron (091700.KS), who was a small supplier for the Galaxy line, and will be using SEMES, MCNEX (097520.KS), and Cammsys (050110.KS) for the Galaxy Flip 5 front camera, and for the Fold 5 Samsung will use the same three suppliers with Shenzhen Sunny Optical (002876.CH) as a secondary supplier, while the upcoming Galaxy S23 line will use cameras from SEMES, Sunny, Powerlogics (047310.KS), and Namuga (190510.KS), with Partron as a back-up supplier.
Partron is trying to diversity, lessening its reliance on the smartphone business, and hoping to move into the automotive camera sector, perhaps a result of Samsung’s supplier changes, but they are still expected to be supplying cameras for Samsung’s mid-to-low priced Galaxy A and Galaxy m series which are their higher volume models but face even more price pressure from Chinese brands. All in, Samsung’s mobile division remains under pressure to reduce costs, and has been and is expected to push even more business toward OEM’s in 2023. This could mean less business for South Korean component suppliers, as OEMs have component source decision making license, and as Samsung pushes more business toward its own affiliates, so the race to be included in those products, such as the foldables and flagship phones, becomes even more important.
Partron is trying to diversity, lessening its reliance on the smartphone business, and hoping to move into the automotive camera sector, perhaps a result of Samsung’s supplier changes, but they are still expected to be supplying cameras for Samsung’s mid-to-low priced Galaxy A and Galaxy m series which are their higher volume models but face even more price pressure from Chinese brands. All in, Samsung’s mobile division remains under pressure to reduce costs, and has been and is expected to push even more business toward OEM’s in 2023. This could mean less business for South Korean component suppliers, as OEMs have component source decision making license, and as Samsung pushes more business toward its own affiliates, so the race to be included in those products, such as the foldables and flagship phones, becomes even more important.
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