Samsung is employing a shrewd component sourcing strategy to counteract rising memory chip costs and maintain competitive pricing for its upcoming mid-range smartphones, notably the Galaxy A57. According to a report from BusinessKorea, the South Korean giant is turning to Chinese display maker China Star Optoelectronics Technology (CSOT) for more affordable OLED panels, a move that helps offset increased expenses elsewhere in the supply chain.
The global smartphone industry is grappling with a significant hike in memory chip prices, which directly inflates manufacturing costs. Even Samsung, as the world’s largest memory producer, isn’t immune to these market pressures. Typically, such cost increases would be passed on to consumers, but Samsung’s vertical integration and flexible supply chain provide a unique buffer. By sourcing OLED panels from CSOT—known for offering lower prices than Samsung’s own display division—the company can absorb the memory cost hike without raising the retail price of devices like the Galaxy A57.
This tactical shift is particularly crucial for Samsung’s mid-range segment, which has faced sales headwinds in price-sensitive markets like India, Latin America, and Southeast Asia throughout 2025. Intense competition and economic factors contributed to Samsung slipping to second place in global smartphone shipments behind Apple. Holding the line on pricing for successors like the Galaxy A57 is essential for recapturing market share. If competing Chinese brands, which have less control over their memory supply chains, are forced to raise prices, Samsung could gain a distinct advantage.
The report further highlights the strength of Samsung’s vertically integrated structure. According to the industry analysts, the company holds an advantageous position because it can adjust supply and pricing for core components internally. Memory chips, which constitute a large portion of smartphone costs, are supplied by Samsung’s affiliates, alongside other components like substrates and camera modules. An industry insider emphasized that while most manufacturers are vulnerable to price hikes from external partners, Samsung’s intra-group supply chain allows for more flexible cost management.
For consumers, this strategy means the Galaxy A57 is likely to debut at a price point similar to its predecessor, the Galaxy A56, ensuring continued value in the competitive mid-range arena. Samsung’s ability to leverage its ecosystem not only stabilizes prices but also reinforces its commitment to delivering quality devices without compromising on affordability.
Looking ahead, this cost-management approach could influence how Samsung navigates future component shortages or price fluctuations across its entire portfolio. Meanwhile, on the spec side, the Galaxy A57 is expected to feature a 6.67-inch 120Hz OLED screen, a triple rear camera setup (a 50MP primary with OIS, a 12MP ultrawide, and a 5MP macro), and a 12MP selfie camera. The phone could be powered by the Exynos 1680 processor, and may house a 5,000mAh battery with 45W fast charging support.
