South Korean smartphone manufacturer, Samsung has decided not to produce its own electric vehicle (EV) brand.
The electric vehicle segment was judged not to be generating sustainable profits, and Samsung avoided potential conflicts with its major clients.
Just like Samsung, Apple itself will not mass-launch electric vehicles, as Apple aims to manufacture its electric vehicles in the high-end segment of the market, which may cost $100,000 or even more than the Tesla Model S.
“I would say, yes, Apple will launch its EV only for high-end users. What it wants is to prove itself as a true content creator and a leader in the global technology ecosystem by using all the features in its ecosystem,” said Lee Han-joon. , analyst at KTB Investment & Securities quoted by the Korea Times, Tuesday (17/5/2022)
Plus, the global EV market is already teeming with battery and parts makers forging partnerships with automakers, either through joint venture establishments or equity purchases.
The more visible point is that Samsung is relying more on client-centric businesses such as its semiconductor foundry.
As seen in the Apple case, other executives say Samsung tries to avoid conflicts of interest with its clients and potential clients.
Samsung itself is a manufacturer of various kinds of electronic equipment such as televisions, household appliances, and the world’s top memory chips.
In addition, Samsung also sells EV batteries to BMW and plans to expand its battery customer base across its joint venture with Canada-based Stellantis. Samsung is also a major supplier of display screens for Tesla’s electric vehicles.
“Now, Samsung recognizes that maintaining high-level alliances and partnerships with clients will be more substantial than advancing into business segments, which could be detrimental to the best interests of corporate clients.” said an unnamed source.
