Intel Boosts Malaysia Operations with Additional RM860 Million Investment 
UPS MD-11 Crash Prompts Families to Prepare Wrongful Death Lawsuit 
Amazon and Google Launch New Multicloud Networking Service to Boost High-Speed Cloud Connectivity 
Amazon Debuts “Amazon Now” for 30-Minute Ultrafast Grocery Delivery 
OpenAI Moves to Acquire Neptune as It Expands AI Training Capabilities 
Australia Moves Forward With Teen Social Media Ban as Platforms Begin Lockouts 
Michael Dell Pledges $6.25 Billion to Boost Children’s Investment Accounts Under Trump Initiative 
Microchip Technology Boosts Q3 Outlook on Strong Bookings Momentum 
Coupang Apologizes After Massive Data Breach Affecting 33.7 Million Users 
Senate Sets December 8 Vote on Trump’s NASA Nominee Jared Isaacman 
Netflix’s Bid for Warner Bros Discovery Aims to Cut Streaming Costs and Reshape the Industry 
Morgan Stanley Boosts Nvidia and Broadcom Targets as AI Demand Surges 
Samsung Launches Galaxy Z TriFold to Elevate Its Position in the Foldable Smartphone Market 
Anthropic Reportedly Taps Wilson Sonsini as It Prepares for a Potential 2026 IPO 
Banks Consider $38 Billion Funding Boost for Oracle, Vantage, and OpenAI Expansion 
GM Issues Recall for 2026 Chevrolet Silverado Trucks Over Missing Owner Manuals 
EU Prepares Antitrust Probe Into Meta’s AI Integration on WhatsApp 
Samsung plans to significantly boost its smartphone production by outsourcing to Chinese manufacturers, increasing output from 44 million to 67 million units.
Samsung's Outsourcing Strategy Targets Cost Efficiency
According to The Elec, Samsung intends to augment smartphone production by joint device manufacturers (JDMs) in China from 44 million units in 2018 to 67 million in 2019. Consequently, 25% of Samsung's projected 2024 smartphone output of 270 million units will be derived from outsourced devices.
In addition to an increased reliance on Chinese companies for production outsourcing, the news source reports that factories in Vietnam will receive 28 million units or approximately 10%.
In 2019, the firm allegedly tried to save expenses and raise prices by outsourcing the production of a few devices. However, Samsung usually reserves this production approach for its low-cost phones rather than its high-end models.
Monitoring Quality in Outsourced Production
While Samsung's adoption of outsourcing to offer more affordable budget phones, as suggested by Android Authority, may seem like a positive move, there are potential risks involved.
The possibility of original device manufacturers (ODM) partners taking shortcuts to maximize profits raises concerns about the quality of Samsung's low-cost smartphones. This aspect of the outsourcing strategy needs to be carefully monitored to ensure it doesn't compromise the company's reputation for quality.
Positive Market Feedback on Outsourced Models
The Samsung Galaxy A03s, reportedly an outsourced phone, has been well-received in the market. As per the tech news website, it boasts a decent battery life and several noticeable enhancements to the quality of life.
This positive feedback on an outsourced device indicates that Samsung's outsourcing strategy, when executed effectively, can lead to successful product launches and customer satisfaction.
19 million JDM cell phones were produced by Chinese businesses between last January and this month. Of those, 10 to 11 million were made by Wingtech, 5 million by Hwaqin, and 3 million by Longcheer.
