Ryan Haines / Android Authority
TL;DR
- Samsung will reportedly improve 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 may 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 at the very least 2019. Now, it appears to be like like the corporate plans to up the ante on this regard.
The Elec stories that Samsung will improve the manufacturing of smartphones by Chinese language ODMs or joint gadget producers (JDMs) from 44 million models final yr to 67 million models this yr. Which means outsourced smartphones will account for 25% of Samsung’s reported manufacturing purpose of 270 million models in 2024.
Along with an elevated reliance on Chinese language firms for outsourced manufacturing, the information outlet stories that 28 million models can 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 sometimes solely depends on this manufacturing technique for its low cost telephones somewhat than high-end units, although.
This isn’t essentially a foul factor, as the corporate may use this outsourcing technique to supply extra competitively priced finances telephones. Nevertheless, this does run the chance of Samsung’s finances units being lower-quality choices as ODM companions may theoretically minimize corners to make a revenue.
For what it’s value, the Samsung Galaxy A03s is reportedly an outsourced telephone, and we thought it delivered good battery life and several other notable quality-of-life enhancements. Nevertheless, 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 means that the outsourcing technique is delivering low cost Android telephones that folks need.