SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung restarts production of its ODM smartphones

Phone
By 

Last updated: August 12th, 2020 at 11:54 UTC+02:00

Samsung made a shift toward the ODM strategy for some of its low-end devices not too long ago. It did that in order to cut down costs so that these phones could be priced more aggressively. The company was expected to launch several ODM models this year but its plans were disrupted by COVID 19.

The production lines for these devices were shut down when the pandemic hit. It has taken some time to get the supply chain and the manufacturing process up and running again. Now, Samsung’s ODM partners in China are once again manufacturing its phones.

Samsung’s ODM vision suffers due to production bottlenecks

The ODM strategy for low-end devices is favored by TM Roh who took over as the head of Samsung’s mobile division earlier this year. Samsung doesn’t manufacture these devices at its own facilities. It only designs them while they’re made by third-party manufacturers in China.

This helps the company to significantly cut costs and thus offer these low-end devices at very attractive prices. Samsung has been competing with Chinese manufacturers in this segment and this strategy is one of the ways it’s looking to counter their influence.

The Galaxy M01s is Samsung’s latest ODM smartphone. Announced in June, this ~$130 entry-level device is manufactured by Wingtech in China. Production of this handset has now resumed. However, the pandemic has forced Samsung to revised its production targets for its ODM lineup. The company previously wanted to ship as many as 60 million ODM smartphones in 2020, but now plans to ship between 24 and 26 million units.

Samsung’s distributors had actually been witnessing increased demand but Wingtech and Hwachin, its manufacturing partners, weren’t able to scale up production rapidly. Samsung may need to work with them to sort out the production bottlenecks in order to realize its ODM vision.

Via Phone Galaxy M01s
Load 1 comments

You might also like

Galaxy M01s finally gets the Android 11 update with One UI 3.1

The Galaxy M01s is the latest Samsung smartphone to get the Android 11 update. The new software update brings …

  • By Asif Iqbal Shaik
  • 11 months ago

Galaxy M01s vs Galaxy M02s: Six months can make a big difference

It’s been roughly six months since the Galaxy M01s was released and now a sequel called the Galaxy M02s …

  • By Mihai Matei
  • 1 year ago

Samsung India drops the pricing of Galaxy A31, Galaxy M01, and Galaxy …

Samsung has permanently dropped the prices of the Galaxy A31, Galaxy M01, and the Galaxy M01s in India. This p …

  • By Asif Iqbal Shaik
  • 1 year ago

Galaxy M01s and Galaxy M01 Core are now INR 500 cheaper in India

Samsung India has dropped the price of two of its budget devices, the Galaxy M01 Core and the Galaxy M01s, by …

  • By Mihai Matei
  • 2 years ago

Galaxy M01s and Galaxy M31 receive One UI Core 2.1 via firmware update

The Galaxy M01s and the Galaxy M31 have both received an important new firmware update this week. The Galaxy M …

  • By Mihai Matei
  • 2 years ago

Samsung Galaxy M01 vs. Galaxy M01s specs comparison

The Galaxy M01s, a successor to the recently announced Galaxy M01, is both an upgrade and a downgrade, as you …

  • By Asif Iqbal Shaik
  • 2 years ago