Samsung reportedly switches to an ODM to make upcoming Galaxy A models
Samsung has a reputation of essentially being both ODM and OEM to its own phones, due to the possession of its own production lines and so on. However, some of these facilities have shut down in recent times, possibly due to less than positive economic circumstances in Asia. Now, a new article in Reuters claims that the Korean electronics company is to outsource mobile devices to an ODM rather than make them itself.
The manufacturer in question has been identified as Wingtech, and is, like the shuttered Samsung factories, based in China. It also acts as an ODM to other companies such as OPPO, Xiaomi and Huawei, and will reportedly supply Samsung with up to 60 million devices per year going forward. These phones are allegedly to include those of the increasingly popular, cost-effective Galaxy A series.
This apparent move has led to speculation that Samsung will jeopardize the resulting devices' quality. Such a theory is based on indications that Wingtech will have a relatively strong influence on the design and build of these products, whereas the OEM normally has approximately 100% control over these variables.
In addition, some analysts have suggested that the company has, like other smartphone brands who use ODMs, made this decision in order to cut costs. However, its representatives have asserted that it is more a matter of “(ensuring) efficient management in the market”. Currently, it is thought that the ODM-associated phones will be shipped to South American and Asian regions; however, Samsung and Wingtech have declined to confirm this point to date.