Battery door evaporates 20 billion Samsung's market value, China ATL becomes Note 7's largest battery supplier

Recently, Samsung's "Battery Door" incident continued to ferment. Samsung Electronics' share price fell by around 10% in four days, and its market value evaporated by US$20 billion. In addition, Samsung Note 7 battery supplier SDI's share price also fell.

This incident caused a very large negative impact on Samsung. For this reason, Samsung made an important decision today to adjust the battery supplier of the product. ATL, the Chinese battery manufacturer that originally took only 35% of orders, will replace SDI as the core supplier of Galaxy Note 7. ATL is also Apple's battery supplier.

SDI is the largest battery supplier for the Galaxy Note 7, which accounts for 65% of the total orders, and ATL is mainly supplying products for sale in China. It is because of this that the Chinese market's products have not been recalled.

Prior to Nomura Securities analyst CWChung that Samsung will definitely invest in ATL:

It is not possible to come up with a solution within a week. It takes 1 month or 2 months to solve the problem. For now, Samsung must rely on ATL to provide batteries.

Informed sources said that after Samsung announced the recall of mobile phones, ATL received a lot of Galaxy Note 7 battery orders, and took over the Galaxy Note 7 battery supply from SDI. Due to the confidentiality agreement, ATL chief operating officer Joe Kit Chu Lam did not disclose the relevant information.

According to South Korean media reports, the shipment of Galaxy Note 7 in 2016 is expected to be 12 million units, and ATL has become the sole supplier of Galaxy Note 7 batteries. Next, it will provide all batteries. However, industry analysts analyze that this is only Samsung's short-term solution. In the long run, SDI will still be the main battery supplier for Samsung handsets.