Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch 
Hims & Hers Halts Compounded Semaglutide Pill After FDA Warning 
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge 
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies 
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
TrumpRx Website Launches to Offer Discounted Prescription Drugs for Cash-Paying Americans 
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate 
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off 
Washington Post Publisher Will Lewis Steps Down After Layoffs 
Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports 
Trump Backs Nexstar–Tegna Merger Amid Shifting U.S. Media Landscape 
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock 
Samsung plans to significantly boost its smartphone production by outsourcing to Chinese manufacturers, increasing output from 44 million to 67 million units.
Samsung's Outsourcing Strategy Targets Cost Efficiency
According to The Elec, Samsung intends to augment smartphone production by joint device manufacturers (JDMs) in China from 44 million units in 2018 to 67 million in 2019. Consequently, 25% of Samsung's projected 2024 smartphone output of 270 million units will be derived from outsourced devices.
In addition to an increased reliance on Chinese companies for production outsourcing, the news source reports that factories in Vietnam will receive 28 million units or approximately 10%.
In 2019, the firm allegedly tried to save expenses and raise prices by outsourcing the production of a few devices. However, Samsung usually reserves this production approach for its low-cost phones rather than its high-end models.
Monitoring Quality in Outsourced Production
While Samsung's adoption of outsourcing to offer more affordable budget phones, as suggested by Android Authority, may seem like a positive move, there are potential risks involved.
The possibility of original device manufacturers (ODM) partners taking shortcuts to maximize profits raises concerns about the quality of Samsung's low-cost smartphones. This aspect of the outsourcing strategy needs to be carefully monitored to ensure it doesn't compromise the company's reputation for quality.
Positive Market Feedback on Outsourced Models
The Samsung Galaxy A03s, reportedly an outsourced phone, has been well-received in the market. As per the tech news website, it boasts a decent battery life and several noticeable enhancements to the quality of life.
This positive feedback on an outsourced device indicates that Samsung's outsourcing strategy, when executed effectively, can lead to successful product launches and customer satisfaction.
19 million JDM cell phones were produced by Chinese businesses between last January and this month. Of those, 10 to 11 million were made by Wingtech, 5 million by Hwaqin, and 3 million by Longcheer.
