April 17, 2024

• 

[ET NEWS] Samsung Electronics has decided to ditch batteries from its long-time Chinese partner ATL for its flagship phones following the massive recall of the fire-prone Galaxy Note 7 last year, according to industry sources on Aug. 21.

The upcoming Note 8 that will be unveiled this week in New York uses 3,300mAh batteries produced by Samsung SDI and Japan’s Murata Manufacturing. 

Batteries of the Note 7 phones are tested at a Samsung lab.

This is the second time that Samsung is ditching ATL batteries for its flagship phones after the current Galaxy S8. Sources said next year’s Galaxy S9 is also likely to use Samsung and Murata batteries only.

For the Note 8, Samsung SDI will be responsible for 80 percent of the battery production, while Murata will make the remaining 20 percent.

Samsung and ATL have maintained a partnership for more than a decade. But their relationship has become sour since the Note fallout last year.

ATL that supplied batteries for the Note 7 along with Samsung SDI complained about Samsung’s heightened quality control and surveillance on suppliers, sources said.

“The two firms failed to narrow their differences on key issues such as handling of unused batteries and related compensation,” an industry source told ET News on condition of anonymity. “It may be possible for them to continue partnership on budget phones or some models for overseas markets, but flagship phones will not use ATL batteries.”

Another source added the breakup with Samsung would not deal a severe blow to ATL, the No. 1 smartphone battery maker whose largest client is Apple.

“ATL appears to be under pressure about purchasing additional testing equipment under Samsung’s tightened quality control,” he said.

By Jung Hyeon-jung (iam@etnews.com) (jylee@heraldcorp.com)
Powered by ET News and The Investor