Samsung to Move its Production Line to China amid Rigorous Competition

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A new deal is in work with Wingtech

Samsung is planning to sift a major chunk of its production line to China. The move is a deliberate effort to counter the rival smartphone makers in the low-cost segment. Prior to this, the company has closed its only plant in China. It seems like the company has taken a complete U-turn on their decision. Samsung is finalizing a deal with the Chinese contractor in a bid to produce the well-known A series of smartphones.

With the move, the smartphone maker wants to improve its position as it has aimed to export 60 million smartphones from the Chinese plant in the year 2020. The number is huge as around 300 million is the total estimate for all of its smartphones in the coming year. Wingtech is known for manufacturing smartphones for famous brands like Oppo, Xiaomi and Huawei. This is one of the biggest reasons for Samsung choosing them, as they have the necessary expertise and quite familiar with such tasks.

The move will bring down the overall cost of the phones

The decision to move production to China will certainly improve the rate of manufacturing. The reliability of the move still hangs in balance as they have faced many issues prior to devices such as Galaxy Fold. Outsource of the manufacturing process to China means a higher possibility of device issues and defects.

As of now, the company is looking forward to cutting down the cost. Though Samsung is still one of the top mobile brands but the other smartphone makers in the budget phone segment are cutting its market share. Lowering the cost of production will help the company to cut down the overall cost of the phones and enable the company to capture more market. The new devices produced by Wingtech will be sold in South American and South-East Asian markets.

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West has been driving the business world owing to its developed economies. The leading part of the world is straining to sustain its dominance. However, the other parts of the world, especially Asia Pacific region have been displaying escalating growth in terms of business and technological advancements.

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