Electric cars are believed to be the future of mobility. Some of the world's biggest car manufacturers are now actively focusing on releasing EVs. The industry is even attracting other companies that aren't in the business of making cars. For example, Apple is believed to be working on its own EV.
At one point, there were rumors that Samsung could make its own electric car as well. Its various divisions already supply components to some of the leading EV manufacturers so it wouldn’t have been impossible for the company. However, it seems that Samsung has decided it’s not going to make electric cars.
Samsung wants to sell more components to EV makers instead
The Korea Times quotes two unnamed senior Samsung executives directly involved in this decision who say that the company will not be making its own brand of electric vehicles. The primary reason is that Samsung believes its efforts in the finished EV segment won’t bring sustainable profits. As a leading supplier of components for the EV industry, Samsung also wants to avoid any potential conflicts with these clients.
"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," one of the sources said.
As its smartphone business faces tough competition and declining profits, Samsung is more reliant on its components business to bring in record profits. It supplies components such as autonomous driving chips, camera modules, batteries, and OLED displays. It counts leading manufacturers like Tesla, Hyundai, BMW, Audi, Rivian, and others among its customers.
If Samsung starts making full-fledged EVs on its own, it will be in direct competition with its customers. It doesn't want to be caught in a situation similar to its patent infringement lawsuit against Apple that dragged on for nearly a decade.
"Given the company's position and solid strength in components, having clear and effective management with clients will matter a lot. Another key lesson that Samsung learned from its Apple fight is to always have an awareness of compliance-focused management," said the second source.
In a nutshell, Samsung feels that it can make more profits by simply remaining a supplier of components to EV manufacturers rather than making its own EV. So it won't make them. That makes me a bit sad. I’ll never find it out if the Galaxy Car Ultra came with an S Pen.