Samsung will increase the number of cheap phones it makes in China
You might think that China is where Samsung phones are made, all of them, but that isn’t true. Most Samsung smartphones are manufactured in Vietnam and India. The company also has factories in South Korea and other markets.
Samsung previously used to manufacture all of its phones in-house. This included low-end and entry-level phones too. A couple of years ago Samsung started outsourcing the production of some of these devices to China. It’s now going to make even more of these devices in China.
Samsung to make more ODM phones in China
The Galaxy A6s was the first ODM (original design manufacturer) phone from Samsung. It was designed by Samsung and manufactured by a third-party in China. The company has since released multiple ODM models. Wingtech is Samsung’s main contract manufacturer in the country.
Samsung has previously set a target to manufacture over 40 million ODM units. The number has now reportedly been increased to 60-70 million units. These orders are said to be distributed between the Wingtech and Hwachin contract manufacturers.
The ODM model enables Samsung to extract more margin out of its cheap smartphones. It’s also able to put these devices out in the market quickly. This pace is also essential in allowing the company to effectively compete in this very lucrative price segment.
Samsung used to have its own manufacturing plants in China’s Tianjin and Huizhou regions. Those plants were shut down as demand for Samsung’s smartphones in China fell to less than 1% overthe years. The ODM phones that are now made in China are shipped across the globe.
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