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Samsung to Shift Handset Production to China

Southern Metropolitan News, 10/15/08

An executive with mobile phone manufacturer Samsung Electronics has stated that the company will move the mobile phone component procurement function of its business from the company headquarters to its Chinese production line. At the same time, Samsung will also transfer a portion of mobile phone production from Kumi, Korea to China, making China its overseas production center. Under Samsung's development plan, the production of all low-end handsets will be moved to China, with the Kumi production line focusing on high-end handset production. The executive also stated that after expanding overseas production capacity, the company will aim to achieve a sales target of 200 mln units.

The company also plans to increase the procurement of locally sourced handset components from the current 60%, up to 70%.

It is also rumored that after expanding Chinese production volume and improving market responsiveness, Samsung will move its entire production, R&D and procurement functions to China.

Keywords: strategy mobile phone mobile phone production procurement production volume R&D sales target Samsung Electronics units wireless mobile phone vendor foreign vendor

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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