Samsung, which has recently fallen behind its competitors, which has introduced affordable products in the smartphone industry, of which it is one of the pioneers, has started to take steps to intensify the struggle with the Chinese. In addition to struggling with companies such as Xiaomi, OPPO and Vivo, Samsung, which struggles with the sub-brands of these companies, changes its strategy in the countries where it continues its production. As it is known, the South Korean giant; It carries out production in India, Vietnam and China.
Taking a new step in these markets, especially in China, Samsung will increase the number of affordable phones in order to have a more successful struggle with its competitors. In addition, different steps will be taken in terms of design.
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Phone manufacturers, as in every sector, are trying to maintain the link between cost and price. The more costly the resulting product, the higher the sales price is for the end user in order to ensure the determined profit margin. The manufacturer, which made different attempts to reduce this cost, introduced its first ODM device about three years ago.
Collaborating with companies called ODM (Original Design Manufacturer), Samsung offered the devices designed and produced by these companies under its own brand. ODMs are manufacturers who think that they cannot have power in the market despite having sufficient capital and equipment, and design and manufacture devices for large companies in this direction. This makes it easier for cheaper phones to come to market as it costs less to the parent company, Samsung.
Moving the lower segment to China, Samsung will launch new and various ODM production phones. While the company will get rid of factory, worker, R&D and parts costs, it will agree with different manufacturers at much more affordable prices. In this way, the only thing left to Samsung will be to brand the phones.
So what do you think about this subject? Do you think Samsung is taking the right step? You can specify in the comments…