Samsung has had a firm grip on various niches in the auto parts industry for several years now. With his own digital cockpithis property car processorand several EV battery power offerswould not be surprised if the hardware giant ever comes on the market with its own electric car.
But Samsung recently decided not to produce a special electric brand, as two senior executives said The Korea Times†
Two reasons why
The first reason behind this decision is that the company does not believe its entry into the EV segment will deliver sustainable profits.
As one of the sources explained:
Samsung still has a lot of work to do to address design-focused issues when it comes to handling the completed EV business. This will cost a lot and can have unguaranteed value from Samsung’s point of view.
The second reason is that the Korean tech giant is trying to avoid any conflict of interest with its current and potential customers.
This reminds of Samsung’s patent disputes with Apple (which supplies the former electronic components) for intentionally infringing upon the design features of the iPhone.
“Another important lesson Samsung has learned from its Apple battle is to always be aware of compliance-oriented management,” said one of the two executives.
As they noted, the company’s priority is to maintain the quality of its existing partnerships, rather than enter new business segments, which could harm the best interests of its corporate clients.
Indeed, a Samsung EV would disappoint countless customers of the industry-affiliated company.
Let’s not forget that Samsung sells SDI batteries to automakers, including Stellantis, BMW and Ford. At the same time, Samsung Display supplies car manufacturers with displays and Samsung Electro-Mechanics collaborates with brands such as Tesla.
And when we add to how competitive the EV market already is, it seems like Samsung would have a lot more to lose from venturing into space. Instead, the tech giant is sticking to what it does best; that is definitely the safest approach.