Scoring countries is Samsung's 'factory' in the world

Samsung is the No. 1 smartphone manufacturer in the world, and each year the Korean electronics company ships about 300 million smartphones. With this number, it's hard to imagine how big Samsung's production network is.

The company currently has many factories in several countries. However, even though Galaxy smartphones are manufactured in many countries, the difference is almost nonexistent because Samsung always has a unique standard for all factories. Below is a list of countries where Samsung smartphone factories are located:

China

Many people will think that China is the world's factory, so it will also be the place where most of Samsung's Galaxy smartphones are made. In fact, it used to be like that but not now.

China is also home to the majority of iPhones in the world and most Android smartphones.

But Samsung has closed its two smartphone factories in China since last year. The last factory to close was located in Huizhou. Starting in 2019, Samsung no longer makes any smartphones in China. Simply because its market share in this market is less than 1% and Samsung also no longer prioritizes this market as before. That's why Samsung stopped all factories and moved to other countries.

Vietnam

Vietnam is emerging as Samsung's new headquarters when it has two production facilities in Vietnam, one located in Bac Ninh and two in Thai Nguyen. Two Samsung factories are involved in making smartphones, tablets and wearables. The annual equipment output of these two factories is 120 million units / year. Samsung usually produces Galaxy S, Galaxy Note and Galaxy Watch series in Vietnam.

Currently, the Korean electronics company is seeking to invest in another factory in Vietnam. An additional information is that most products supplied to North America and Europe are made in Vietnam.

India

Not only does India have Samsung's largest mobile manufacturing plant, but it is also the largest mobile manufacturing division in the world, in terms of production scale.

In 2017, Samsung invested about US $ 620 million in a factory in India to double smartphone production. By 2018, Samsung also inaugurated a new factory in Noida, Uttar Pradesh state. The production capacity of this factory is currently 120 million units / year.

Samsung factories here account for most of the Galaxy smartphone supply for the Indian market. This is one of Samsung's most profitable smartphone markets. With competitive import tariffs, Samsung smartphones, when processed in India, will have competitive prices much better than rivals.

Samsung mostly produces Galaxy M and Galaxy A-series smartphones here. These smartphones can be sold in India or exported to markets like Europe, Africa and West Asia.

South Korea

Of course, in addition to other countries, Samsung also has manufacturing facilities located in its home country. The factories here benefit from the close proximity to the supply of components from Samsung Group subsidiaries. However, South Korea's smartphone factory accounts for less than 10% of Samsung's global smartphone market.

Most smartphones produced at this factory mainly cater to the domestic market.

Brazil

Few would expect that, Samsung also has a manufacturing facility in remote South America. Samsung currently operates a manufacturing plant in Brazil. This facility was founded in 1999 and currently employs over 6,000 workers.

The Brazil-based factory is responsible for producing and distributing most of the smartphone to Latin America, with Braizil imposing a high import tax that makes having a manufacturing plant here a huge help for Samsung. lower prices and increase competitiveness.

Indonesia

Indonesia is also a country where Samsung factories are located. This is one of the latest steps of the Korean electronics firm.

Samsung's first manufacturing plant in Indonesia opened in 2015 with a production capacity of about 800,000 units per year. This output is sufficient to supply the needs of the world's fourth most populous market.

How is Samsung's manufacturing priority changing?

The smartphone market has changed dramatically throughout the past decade. Chinese smartphone makers are putting a lot of pressure on big players in the market like Samsung or Apple.

The emergence of Chinese smartphone companies stretching from the low-end to high-end segments forced firms like Samsung and Apple to change the approach to customers and more aggressive advertising.

A significant change in Samsung's manufacturing priorities, it is the launch of the Galaxy A6s in 2019. This smartphone is not manufactured by Samsung but a result of cooperation with a third party (ODM: Design firm and manufacturing products according to order). Products targeted to the Chinese market.

The ODM solution enables Samsung to significantly improve profit margins on low-cost devices. Currently, Samsung is expected to produce about 69 million smartphones under the ODM model in the near future.

Switching to the ODM model means that Samsung will not be able to optimize its production capacity. However, that's not a problem as these smartphones will still contribute to Samsung's sales and market share.

So where is a genuine Samsung smartphone made?

There is a misconception that Samsung's original smartphone is based on the country of manufacture. However, practically all smartphones manufactured at Samsung factories or ODM partners are original. It doesn't matter if the product is made in Korea or Brazil or a smartphone assembled in Vietnam will not be better than in Indonesia.

This is because these factories are only involved in assembling and finishing equipment, not product design. The plant is the operation of the processing line, processing and assembly of components into the final equipment. Therefore, be assured that all production processes and quality are synchronized between all factories, so you do not need to worry about the origin of Galaxy smartphones.

Refer to Sammobile