One of the bets of the vast majority of technology manufacturers today is on the electric vehicle market. xiaomi and even Apple development of own vehicles. For this reason, it was expected that Samsung also enter this business, but the company executives said today (16) in Korea Times that the company will not invest in this market.

As indicated SamMobileat present, the South Korean giant is already market leader in the sale of components to several car manufacturers. Because of this, and because it offers such a wide range of products, it was only a matter of time before it was expected to announce its first electric car.

According to two senior leaders Samsung who spoke to Korea Timesthe manufacturer believes that his investment in production vown vehicle may not end up generating sustainable profits for her. One source stated that it “has still a lot of work to do to solve design issues when it comes to working with the off-the-shelf EV business. This will cost a lot and may have non-guaranteed value from Samsung’s point of view.”

Credits: Samsung Disclosure

With increased competition in several of its core businesses, such as smartphone sales, the manufacturer is increasingly focusing on the production of components for profit. It is currently already supplying autonomous driving chips, camera modules, batteries and OLED screens to major automakers in the market such as bmw, Audi, Hyundai and Tesla.

If a company decides to enter the market with its vehicle, this could mean direct competition with multiple clientswhich can lead to a number of problems and lower revenue from parts sold.

OUR Samsung believes it can profit more from the EV market simply by supporting component sales. In addition, one source said that the company wants to maintain a good relationship with its customersstating that “an important lesson Samsung learned from its dispute with Apple is to always keep compliance-focused governance in mind.”

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Source: Korea Times, SamMobile