Samsung to outsource production of low-end devices, focus its own manufacturing plants on premium models

Posted by Abhijeet M. on 13 November 2013 at 10:48

Samsung has all the resources it needs to build its own smartphones, and also build components for other manufacturers (like the processor for Apple's iPhone). However, according to the Korean media and an unnamed industry insider, Samsung is looking to outsource some of the manufacturing work to other companies, especially for its low-end and mid-range smartphones, which it expects will drive smartphone growth in the coming years, while Samsung's own manufacturing plants will focus on "premium smartphone production."

The Galaxy Trend DUOS is currently the most popular Samsung smartphone whose production is handled by a subcontractor, namely Zhonghuan Telecommunication, which is reportedly a joint venture created by Samsung in Tianjin and has produced more than 10 million units of the device. Given the immense popularity of some of Samsung's low-end and mid-range models, outsourcing production would ease the pressure on the company's own plants, while still bringing in the sales and success that these smartphone models have done in the past.

Via | Source

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