Samsung wants to compete better with Xiaomi and other Chinese manufacturers, so in Suwon they are already working on a price reduction strategy that will involve manufacturing more “white label” mobiles in China.
Even though Samsung announced in early 2022 the best economic results in its recent history thanks to the adoption of 5G and folding mobiles, the truth is that the giant from Suwon is facing increasingly fierce competition, particularly in key markets such as China and Indiawhere Chinese manufacturers such as Xiaomi, OPPO, vivo or OnePlus continue to tirelessly sell millions of units of their cheapest smartphones.
Perhaps for this reason, at Samsung, they have been trying to improve their prices and competitiveness for several quarters especially in the mid-range and basic segments of the market, although cutting costs is not as easy as it seems in an economy of scale, so the South Koreans ultimately had to opt for outsource a large part of the production to some partners in China.
Thus, Samsung factories in Vietnam, India, South Korea, Brazil and Indonesia have long receive help from at least two Chinese manufacturerswho are actually responsible for laying a cable not only during assembly and manufacturing, but also in the design and development of some ODM type devices (Original design manufacturing) which are later rebranded as Samsung.
Samsung wants to better compete with Xiaomi and other Chinese manufacturers, which happens by improving its prices and reducing costs by expanding agreements with local Chinese manufacturers who will supply more than 90 million units of Galaxy smartphones in this year 2022 .
The model would be similar to the one we already know from the white marks in supermarkets, since Samsung is in charge, together with its partners, of designing and completing the development of the terminals, which are then assembled in these external factories of the company itself partner and they are marketed under the Samsung name to reduce costs and improve competitiveness.
As SamMobile told us, this type of production MDGs we use only in the cheapest Samsung rangessuch as Galaxy A03, Galaxy A03s, Galaxy A03 Core or Galaxy Galaxy A22 5G, among others, which are designed and assembled in the factories of wingtech Yes Huaqin in China.
Moreover, as it turned out, Samsung intended at the beginning of the year to order approximately 70 million units to its Chinese partners throughout this year 2022, although apparently, finally, these plans would have come to an end, forcing the Suwon firm to download your orders by 20 million additional units extra, especially Galaxy A03 and Galaxy A04s.
Samsung’s partners in China only develop and assemble basic and cost-effective mobile phones, although being safe among the best-selling Galaxy terminals, the most important thing will be to ensure their quality standards.
This will allow Samsung to minimize production costs of these inexpensive devices, very important for compete primarily in emerging markets with Xiaomi, OnePlus, OPPO, realme, vivo and other Chinese manufacturers, something that is basic for popularize a One UI experience which in our markets already has more tradition and thousands of fans.
We will see if Samsung succeeds or not, the task is complicated, even if it is true that lower prices, especially in the best-selling ranges, will undoubtedly help to improve their market share. In any case, the main problem will be around how to ensure the best quality of these “white label” mobileswhich will not be assembled directly in Samsung factories with their production standards… It will be time to try them and tell you first hand!
Related Topics: Samsung
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