The company has decided to outsource the manufacturing of some smartphone models to reduce their prices.
Samsung’s management has decided to outsource the manufacturing of part of their products to Chinese companies including Wingtech. This step should significantly reduce the prices of its devices. In 2020, contractors will manufacture about 20% of 300 million Samsung smartphones produced.
Companies such as Wingtech specialize in manufacturing gadgets for many famous brands. In particular, it is Wingtech that assembles smartphones for Huawei, Xiaomi and Oppo. Samsung’s savings on some consumables will come up to 30%.
Smartphones assembled in China, rather than at Samsung’s plants in Vietnam, will be sold at lower prices. As it often happens in such cases, the product quality may deteriorate. However, Samsung’s representatives are promising to exercise strict control over the manufacturing quality.
Outsourcing is a necessary step for Samsung, which will enable the company to maintain its position in the market and meet the competition from Chinese manufacturers, who attract a greater number of customers by offering them lower prices.
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