Samsung Electronics is looking into a plan that will exclude a charger from a list of components of a smartphone from going forward in order to reduce its production cost and due to the fact that smartphone chargers are supplied sufficiently.
According to the industry on July 8th, Samsung Electronics is looking into a plan that will exclude a charger from a list of components of a smartphone along with its partners. Although the exact timing and the manner of how it is looking to carry out its plan are not finalized, it is heard that it is looking into excluding chargers from few models that are expected to be released in 2021.
“Samsung Electronics is discussing with its partners about a plan that will exclude chargers from a list of components of smartphones.” said multiple representatives from the industry.
A charger is provided as a basic component whenever a person buys a smartphone. Because a smartphone can be used only when its battery is charged, a charger always comes with a smartphone whenever a person buys a smartphone.
However, it is heard that Samsung Electronics is discussing about a plan that will exclude chargers from a list of components of smartphones because it believes that chargers are supplied sufficiently as it has been more than ten years since the first smartphone was released. The industry also believes that Samsung Electronics is looking into this plan as it looks to reduce its production cost in order to offset smartphone prices that are soaring as time goes by due to additional features such as 5G network.
A charger’s unit cost is not expensive like that of semiconductors and displays. However, it has become very important for smartphone makers to reduce their production costs in order to secure profitability as the global smartphone market has become saturated. As a result, Samsung Electronics is looking into a plan that will exclude chargers from a list of components of smartphones.
Although Samsung Electronics has yet to make a final decision on which model and when it plans to carry out its plan, it will be interesting to see how consumers will react to such move made by Samsung Electronics.
There is a chance that consumers will not welcome such move as there is a wide-spread perception that smartphones have become very expensive due to an addition of latest technologies. Also, if Samsung Electronics does not provide other compensation or benefit while not providing chargers along with their respective smartphones, there is a chance that it will lead to complaints and ultimately lower sales.
Samsung Electronics’ plan is also expected to have an impact on relevant industries. Samsung Electronics is the world’s biggest smartphone maker that manufactures 400 million smartphones annually. If it reduces the number of chargers it purchases for its smartphones, companies that have been supplying chargers to Samsung Electronics will take a significant blow. When Samsung Electronics’ plan is placed into effect, these companies have to either look for new customers or target consumers directly. At the moment, there are three South Korean companies that supply their chargers to Samsung Electronics.
This move by Samsung Electronics is also becoming a topic within the global smartphone industry. Barclays, a British multinational investment bank, predicted that Apple will not include wired earphones and a charger with its next new iPhone. It is heard that Apple is considering same reasons as Samsung Electronics. It will be interesting to see whether consumers will agree to this change without any complaint or show resistance.
Staff Reporter Yun, Geonil | benyun@etnews.com