Made in China: Samsung Farms Out More Phones to Fend Off Rivals

Samsung is planning to introduce its fifth edition of its Smartphone, and the Company is planning to outsource the production of the fifth Smartphone from China. The Company is planning to take this decision to compete with its rivals like Huawei and Xiaomi, the low-cost mobile Company. People who are familiar with this step of Samsung say that the Company will find this strategy difficult and risky.

Image Credit: Reuters

About the strategy that is opted by Samsung 

In October, the Company shut its last in-house Chinese factory, but now it is looking like that the Company is creeping for the production of its Galaxy A models. Samsung is moving production to some contractors who are well known outside china like Wingtech. As per the source, South Korean tech is planning to ship almost sixty million phones that will be made in china by the original design manufactures, but Samsung is entirely about the volume of products made in china.

This year after the screen defects were identified, Samsung delayed the launch of its folding phone as now the Company cannot afford any other quality crisis. In 2016 Samsung faced huge losses after the report of the expensive phone that was catching fire. As per the people who are familiar with the Samsung strategy says that the Company does not have a little chance, but the Company could save costs by the use of the Chinese original design manufacture.

To ensure efficient management in the market and to broaden its existing portfolio, Samsung is making limiting lines of smartphones outsides its plants, as per the statement made by Samsung. The Company did not provide any information about the future volume of production that is to be made by ODMs. Samsung thinks it is taking this step to compete with its rivals and to reduce its cost of production.