Samsung will outsource even more smartphones to China

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• Samsung will reportedly increase its outsourcing of smartphone design and production to Chinese companies.
• Outsourced phones will apparently account for 25% of the company’s production this year.
• This strategy can deliver cheaper phones, although it could come at the cost of quality and design.

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Samsung has outsourced the design and production of some cheap phones to original device manufacturers (ODM) since at least 2019. Now, it looks like the company plans to up the ante in this regard.

The Elec reports that Samsung will increase the production of smartphones by Chinese ODMs or joint device manufacturers (JDMs) from 44 million units last year to 67 million units this year. That means outsourced smartphones will account for 25% of Samsung’s reported production goal of 270 million units in 2024.

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