Samsung has taken a new initiative to retain its position in the phone market. They are looking to outsource after shutting down their latest factory in China last month.
Samsung plans to give Chinese company WingTech a 5 percent smartphone production to reduce phone prices and reduce production costs. They want to produce the Galaxy A series of phones through WingTech.
WingTech is also in charge of designing Samsung phones. WingTech also produces phones from Samsung’s two rivals, Shaomi and Huawei.
According to research firm Counterpoint, original device manufacturing companies make the necessary components and components. Because they make smartphones of $ 100 to $ 250, they can keep prices of essential parts and components up to 10 to 15 percent lower than other companies.
According to a source, WingTech will be able to pay 30 percent less than Samsung manufactures in Vietnam.
Samsung has set a target of making 30 million devices next year. Of these, they want to create 6 million smartphones a year through the original device manufacturer. This number is 20 percent of the total device.