VARTA becomes the main supplier of batteries for Samsung gadgets
Dismantling the latest wireless in-ear headphones the Samsung Galaxy Buds Live revealed that the source of power for them is a lithium battery in a standard form factor CP1254 «pill”. However, a variety of suppliers for this item should not be expected. It turned out that the German company VARTA will become the main supplier of “coin” batteries for Samsung wearable electronics for a long time. It’s all about VARTA patents and competition.
Back in February this year, VARTA filed a lawsuit against Samsung Electronics regarding the use of “coin-cell” batteries in gadgets of the South Korean company. The fact is that Samsung installed not only VARTA batteries but also Chinese-made batteries in branded wireless headphones. According to VARTA, Chinese manufacturers were violating the company’s patents, so Samsung had to stop purchasing batteries from the Chinese.
By August, the dispute between VARTA and Samsung had been settled, and at the start of the new month, the German manufacturer announced it was expanding its partnership with Samsung for “many years.” For better or worse, VARTA has become the main supplier of batteries for Samsung headsets. We add, VARTA also supplies batteries for Apple AirPods in large quantities.
At the same time, LG Chem and Samsung SDI are not going to put up with the dominance of VARTA. LG Chem has already started shipping batteries for Apple AirPods this year, and Samsung SDI has sent out samples of its CP1254 battery to customers. They are now undergoing qualification tests and will begin mass production this fall. Over time, Samsung Electronics will begin to pack its headphones with Samsung SDI batteries. No doubt in full compliance with VARTA patents.
We add the market for wireless headphones is growing at a rapid pace. According to analysts, the need for batteries for this sector will grow from 300 million in 2019 to 1.2 billion in 2025. There is something to fight for here.
