A Newsis News Agency report, cited by DigiTimes, suggests that Samsung will increase its smartphone orders with Chinese ODMs next year. The move comes as the Korean tech giant wants to remain and improve its competitiveness, and it aims to achieve that by lowering production costs.
The report puts a number on it. About 20 percent of Samsung’s total smartphone shipments in 2020, or around 60 million units, will be manufactured by China-based ODMs. The number is twice as high as the one for 2019, when Samsung outsourced its production of about 10 percent, or 30-40 million smartphones to ODMs.
These partners are Wingtech Group, added by Samsung in September 2018, Huaqin Telecom Technology, added in July 2019.
As a comparison, the other Korean tech giant, LG, is also reportedly going to outsource about 30 percent of its total smartphone shipments to China-based ODMs in 2020.