Samsung has had a firm grip on several niches in the automotive components industry for some years now. With its own digital cockpit, its proprietary automotive processor, and various EV battery supply deals, it wouldn’t be surprising to see the hardware giant enter the market with its own electric car at some point.
But Samsung has recently decided not to manufacture a dedicated electric brand, as two senior executives told The Korea Times.
Two reasons why
The first reason behind this decision is that the company doesn’t believe its entrance into the EV segment will bring sustainable profit.
As one of the sources explained:
Samsung still has a lot of work to do in addressing design-centric issues when it comes to the handling of the finished EV business. This will cost a lot and may have unguaranteed value from Samsung’s standpoint.
The second reason is that the Korean tech giant is trying to avoid any conflict of interest with its current and potential clients.
This recalls Samsung’s patent litigation with Apple (whom the former is supplying with electronics parts) over intentional infringement of iPhone design features.
“Another key lesson that Samsung learned from its Apple fight is to always have an awareness of compliance-focused management,” one of the two executives said.
As they noted, the company’s priority is to maintain the quality of its existing partnerships, rather than enter new business segments, which could hurt the best interests of its corporate clients.
A Samsung EV would indeed dissatisfy numerous clients of the company affiliated with the industry.
Let’s not forget that Samsung SDI is selling batteries to automakers including Stellantis, BMW, and Ford. At the same time, Samsung Display is supplying displays to car manufacturers, and Samsung Electro-Mechanics is working with brands like Tesla.
And if we add to that how competitive the EV market already is, it seems that Samsung would have much more to lose venturing into the space. Instead, the tech giant is sticking to what it does best; that’s definitely the safest approach.
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