Samsung moves manufacturing to China
Mobile phone giants Samsung plan to offload some of their manufacturing to China in a bid to cut costs and compete with Chinese based rivals.
The surprising announcement that Samsung will move one fifth of its smartphone manufacturing to China in 2020 comes just a month after it shut down its last factory there. It’s believed that Samsung has been forced into the move as it faces increasing competition from the budget smartphone market, who sell high volumes of phones at cheaper prices. Outsourcing the manufacturing of their Galaxy A phones to China will save the company a healthy sum of money, allowing them to compete with other Chinese based handset makers, such as Huawei and LG.
Significant savings on components
As part of its strategy, Samsung will partner with original design manufacturer, Wingtech, something its competition do already. When outsourcing to China, production costs can be a lot cheaper than in other parts of the world and companies can save significant amounts of money, particularly on the price of components. Indeed, it’s thought Samsung will save up to 30% on some of its parts by making the move to China. Samsung has said it has outsourced some of its smartphone production in order to widen their existing portfolio and ‘ensure efficient management in the market’.
Does this mean lower quality?
Critics of the move fear that by outsourcing to China, Samsung could compromise the quality of its phones. This is something they can ill afford given some of their recent problems, including the disastrous roll out of the Galaxy Fold which had several reports of breakages. However, Samsung has confirmed the phones made in China will be subject to the same strict quality checks as all of their manufacturing processes. Indeed, outsourcing to China doesn’t mean lower quality, especially if you conduct thorough research and use a reputable company.
If you’re thinking of taking advantage of the benefits of outsourcing to China like Samsung, there’s no better choice for UK-based businesses than China Outsourcing Ltd. To learn more about the process and how outsourcing can save you money without compromising on quality, contact us today on 01202 606141.