Ryan Haines / Android Authority
TL;DR
- Samsung will reportedly enhance its outsourcing of smartphone design and manufacturing to Chinese language firms.
- Outsourced telephones will apparently account for 25% of the corporate’s manufacturing this yr.
- This technique can ship cheaper telephones, though it might come at the price of high quality and design.
Samsung has outsourced the design and manufacturing of some low cost telephones to unique gadget producers (ODM) since a minimum of 2019. Now, it seems to be like the corporate plans to up the ante on this regard.
The Elec stories that Samsung will enhance the manufacturing of smartphones by Chinese language ODMs or joint gadget producers (JDMs) from 44 million items final yr to 67 million items this yr. Which means outsourced smartphones will account for 25% of Samsung’s reported manufacturing aim of 270 million items in 2024.
Along with an elevated reliance on Chinese language firms for outsourced manufacturing, the information outlet stories that 28 million items shall be outsourced to factories in Vietnam.
The ups and downs of outsourced Galaxy telephones
The corporate first outsourced the manufacturing of some smartphones in 2019, reportedly in a bid to chop prices and decrease costs. Samsung usually solely depends on this manufacturing technique for its low cost telephones relatively than high-end units, although.
This isn’t essentially a nasty factor, as the corporate might use this outsourcing technique to supply extra competitively priced price range telephones. Nonetheless, this does run the chance of Samsung’s price range units being lower-quality choices as ODM companions might theoretically reduce corners to make a revenue.
For what it’s price, the Samsung Galaxy A03s is reportedly an outsourced cellphone, and we thought it delivered good battery life and several other notable quality-of-life enhancements. Nonetheless, we additionally criticized the gadget for its low cost building and laggy efficiency.
In any occasion, Samsung was the one Android producer within the record of high 10 best-selling smartphones in 2022 and 2023. This implies that the outsourcing technique is delivering low cost Android telephones that folks need.