Samsung will open production of inexpensive smartphones with Xiaomi
As you know, Samsung produces smartphones at its own production facilities. But, according to industry sources, the South Korean giant can outsource the production of a number of models. So far, we are talking only about the devices of the middle and budget segments intended for sale in China.
Last week, a delegation of Samsung Electronics headed by Executive Vice President Roh Tae-Moon visited the Chinese company Wintech. The company is known for being a contract manufacturer of Xiaomi phones. The results of the negotiations are not reported, but if they are positive, the Samsung and Xiaomi devices will be producted on the same assembly line.
Rumors about Samsung's plans to transfer production of some smartphone models to ODM companies appeared in July. With this measure, the Korean brand hopes to strengthen its position in China, where it is thoroughly squeezed by local competitors. The latest study by Strategy Analytics showed that Samsung's share in the Chinese market fell from 1.3% in the first quarter of 2018 to 0.8% in April–June.
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