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Samsung plans to contract out smartphone manufacturing to China - Business Insider

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Samsung's plan to outsource more smartphones is a play to drive value to its Galaxy A series:

However, margins for midtier phones tend to be slim, according to Reuters, potentially exacerbated by competition from feature-packed midtier phones across the industry, including from the Should Samsung shift production to ODMs, it could match its competitors' cost advantages: For instance, ODMs can bulk order components and negotiate better prices from suppliers — this leads to an estimated 10% to 15% cost savings compared with in-house manufacturing for $100-$250 smartphones, according...

If Samsung were to choose Wingtech as its supplier, for instance, the China-based ODM would be able to bargain for components on of three of the top four smartphone-makers by global shipments. With flagship phones, however, smartphone-makers may want to retain greater control over the manufacturing process to create product differentiation.Connectivity & Tech Pro

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