[THE INVESTOR] Samsung Electronics is expected to secure all batteries for its Galaxy Note 7 smartphone from China’s ATL amid its recall of 2.5 million units using Samsung SDI batteries.
“A high-ranking Samsung official last week asked ATL to increase the monthly supply to 4 million battery cells,” an ATL executive was quoted as saying by Economic Times on Sept. 9. “We have decided to do so.”
Following its recall decision of Note phones on faulty batteries last week, Samsung announced it would ditch Samsung SDI batteries for new orders. Explosions were reported only in batteries produced by the sister firm, while no reports were made on those produced by ATL.
According to the report, Samsung and ATL have tentatively agreed on the new supply deal, with more detailed talks ongoing.
Previously, Samsung SDI was supposed to make 60 to 70 percent of Note batteries, while ATL produced 30 to 40 percent of the orders.
Industry sources said, however, it is also likely that Samsung relies on its sister firm to beef up production. Another factor is Apple’s new iPhone 7 sales because ATL is the first battery supplier to the new phone.
By Lee Ji-yoon (firstname.lastname@example.org)