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Production of Galaxy A devices to be outsourced by Samsung to China

Effective 2020, Samsung is reported to be planning to sell Galaxy smartphones developed by original design manufacturer (ODM) partners outside China. Approximately 20% of production will be outsourced to China in a bid by the company to compete against local rivals in the low-budget market.

As it stands, Samsung had purportedly already start moving out production of its Galaxy A series smartphone to a third party firm in China that goes by the name Wingtech. Wingtech is one of several ODMs that is based in China and is employed by brands such as Huawei to mass-produce entry-level devices. The decision by Samsung to outsource production is surely a risky one, as it has to face the possibility of products not made to internal standards. A repeat of the incident with the Galaxy Note 7 would be most terrible for the company.

In any case, Samsung has little choice at this point with regards to its business in China, especially as it has already closed its Huizhou plant a few months before this. At its operational height, the plant hired over 6,000 workers and produced 63mn smartphone units.

Source: Reuters

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