20 November 2019
Samsung is reportedly planning to release third-party made Galaxy phones to markets other than China as well. Until now, the South Korean company has launched only one ODM-produced smartphone called the Galaxy A6s in China, but going by the latest report from Reuters, this is about to change as Samsung plans to bring more ODM-developed phones not only in China but in other regions as well.
An ODM-made smartphone is not manufactured by the company in its own factories. In this case, Samsung outsources the production to a contractor. It is estimated that the decision has been made to better compete in the Chinese market where the company’s shares fell below 1 percent. It became evident when Samsung shut down its last factory in China that it will sell ODM-produced products in the country.
Now, Reuters reports that out of the 300M devices that it expects to ship next year, Samsung will outsource a fifth of that production to ODMs in China. Reportedly, Samsung is making arrangements to shift production of some Galaxy A models to third-party manufacturers like Wingtech. It is reported that Wingtech will get both the design and production for Samsung's lower and mid-range Galaxy A handsets. The units will then be sold in China and markets across Southeast Asia and South America.
The step doesn’t completely keep Samsung away from its own products. In order to ensure quality, Samsung will oversight the design and development of its ODM smartphone. The report citing the sources also states Samsung is pairing Korean component suppliers with Chinese contractors in order to reduce the possibility of any quality issues.
Note that these are plans for the lower and mid-range Samsung Galaxy phones only and nothing changes for premium mid-range and flagship devices. Samsung has the entire control of these series and will manufacture them at its factories in Vietnam and India.