Samsung is reportedly planning on selling Galaxy smartphones made by original design manufacturers (ODM) partners outside China, starting next year. The Korean electronics brand will supposedly outsourcing about a fifth of its smartphone production to China next year, in an effort to go head-to-head with several Chinese rivals in the low-cost smartphone market.
Specifically, sources with information about the situation say that Samsung had already begun moving out the production of its Galaxy A series smartphone to a Chinese third-party manufacturer named Wingtech. For those unaware, Wingtech is one of multiple ODMs that exists within China. Hired by major smartphone brands like Huawei to sometimes mass-produce entry-level smartphones.
Samsung’s decision to outsource the production of its Galaxy A series is essentially a gamble; it runs the risks of its product not being made up to its internal standards. Something it cannot afford, especially after its explosive Galaxy Note 7 debacle in 2016.
Having said that, the brand may not have a choice moving forward, especially after it officially shut down its Huizhou factory more than a couple of months ago. At the height of its operation, the factory housed more than 6000 employees and produced up to 63 million smartphones.