Chinese display manufacturer BOE has decided to exit the supply chain for OLED panels intended for Samsung’s upcoming Galaxy S27 smartphone series. This decision carries significant implications for Samsung’s device production and pricing strategy. Samsung’s MX division, responsible for consumer devices such as smartphones, has traditionally sourced OLED panels from Samsung Display, the company’s in-house display maker. However, the two divisions operate independently, and the MX division does not control panel pricing despite relying on Samsung Display. BOE had been considered a cost-effective alternative due to its competitive pricing compared to Samsung Display’s higher costs, which could have helped reduce the overall device price.
Recently, Samsung Electronics president Roh Tae-Moon made a business trip to China and reportedly met with BOE officials. Industry speculation suggested that BOE might supply displays for the base and Plus models of the Galaxy S27 series. Unfortunately, these talks did not yield an agreement, and BOE officially withdrew from the supply deal shortly after Roh’s visit. Despite significant investments by BOE in preparing panels for the Galaxy S27, internal concerns within Samsung led to the termination of supply discussions.
Though BOE has stepped back from supplying OLED displays for the Galaxy S27, it has not completely abandoned its efforts to work with Samsung in the future. The company may revisit partnership opportunities with Samsung for later models such as the Galaxy S28 or other devices. This development comes amid broader challenges in the electronics industry, including rising component costs.
One notable factor influencing Samsung’s production decisions is the soaring price of DRAM memory chips. The global memory market is currently facing a shortage caused by reduced production and a shift in supply towards high-bandwidth memory (HBM) used by large AI companies. As a result, DRAM prices have surged dramatically—up approximately 90% in early 2026—reaching about $150 for a 12GB RAM module. This increase is expected to continue through mid-2026, further driving up costs for flagship smartphones like the Galaxy S27.
With DRAM prices climbing sharply, Samsung faces pressure to either reduce production volumes of its new flagship or raise retail prices to maintain profitability. The absence of cheaper display panel options from BOE removes one potential avenue for cost savings. As a result, consumers may see higher prices or fewer units available when the Galaxy S27 series launches in early 2027.
Samsung’s decision to rely solely on its internal display division for the Galaxy S27 comes at a challenging time when component costs are escalating across the board. Industry observers will be watching closely how these supply chain adjustments affect Samsung’s competitive position in the premium smartphone market. While it remains possible that negotiations with BOE could resume in the future, current circumstances suggest that Samsung will need to carefully balance cost management and product availability ahead of its next flagship release.
