Samsung has found a way to make smartphones cheaper

For the sake of savings, Samsung will give the production of some smartphone models to Chinese partners. This is reported by the Korean edition of The Elec.

As it became known to sources, Samsung has found a way to make the production of phones cheaper. The company intends to use the JDM method more often and transfer the right to assemble low-cost smartphones to Chinese suppliers. The JDM (Japanese Domestic Market) method originated in Japan, in a broad sense, it means that a foreign company produces its equipment using local enterprises, often it has no analogues in the world.

Analysts interviewed by the publication explained that there is fierce competition in the market for cheap devices, and the profit from the sale of budget smartphones is relatively low. In this regard, Samsung will produce some affordable devices by the Chinese companies Wingtech and Huaqin. This applies to Galaxy A03, A03s, A03 Core, A04 and A22 5G models. It is specified that the company planned to release 50 million gadgets in 2022 with the help of partners – now order volumes have increased by 20 million units.

“It’s hard to make low-cost phones profitable because the unit price is low,” a Samsung spokesman commented on the news. The journalists found out that one of the main competitors of the Korean corporation, Apple, in turn, increased the production of expensive iPhone models.

Earlier, CIRP analysts named the most popular Apple smartphone on the market in March. It turned out to be the iPhone 13, whose share in the ecosystem of the American brand was 38 percent.