Samsung moves production to Vietnam in order to keep profit margins


High-end handset sales made by Samsung are slowing down, as per a recent Bloomberg report, which forces the manufacturer to look elsewhere when it comes to production, in order to protect its profit margins. “To secure even lower wages”, Samsung is opening a factory in Vietnam that will start production in February 2014.

It will reach full capacity production by 2015, at which time it will secure the production of 40% “of the phones that generate the majority of Samsung’s operating profit”, says Bloomberg. The information is also confirmed by a certain government issued statement from November 22, 2013. Shifting production to Vietnam, Samsung will join other companies, like Nokia and Intel, that are already producing products in said country. The move away from China is mostly due to “China’s higher labor costs”, according to Lee Jung Soon, from Korea Trade-Investment Promotion Agency.

Source: Bloomberg


What's your reaction?
Love It
Like It
Want It
Had It
Hated It
About The Author
Anton D. Nagy
Anton is the Editor-in-Chief of Pocketnow. As publication leader, he aims to bring Pocketnow even closer to you. His vision is mainly focused on, and oriented towards, the audience. Anton’s ambition, adopted by the entire team, is to transform Pocketnow into a reference media outlet.Given his background, and knowing his potential, something tells us he will succeed this time too! Stick around!