Key Points:
- Samsung’s objectives for the next 12 months are to achieve its target of 67 million smartphones sold in 2024… Samsung plans to accelerate the production of smartphones and for this purpose, joint design with Chinese businesses Have entered into manufacturing partnerships.
- This strategy also enables Samsung to reduce the high cost risks that often arise when such a division is undertaken by a company alone, and importantly to adapt to local market tastes contributed by Chinese partners.
- This action comes at a time when political relations between the countries are unstable and Alltel is keen on the Chinese market despite this situation.
Samsung is looking to expand its capacity in China through its joint design manufacturing (JDM) tie-up to gain bigger market share in the highly sensitive smartphone operating system business. This has been attributed to Korean technical media reports. Speculations suggest that the tech giant aims to increase smartphone production to 67 million this year from the previous output of 44 million units.
This is where Samsung and its Chinese partners both undertake the design aspect and work on joint manufacturing and selling of these products, the articles are shared as per the agreed percentage. This is not only beneficial to Samsung as it is used to reduce the cost of production, but also provides the opportunity to work with local manufacturers and potentially use it to develop products specific to the culture of that region. Can be done for.
While Samsung has mostly benefited from export control chains restricting the sale of advanced chips in certain markets, the company’s expansion into China is a clear indication of its future plans in China. This is no longer the case after Premier Li Qiang recently met with Samsung Chairman JY Lee, suggesting China wants more investment from the South Korean technology giant.
This comes at the right time when the three countries are preparing for trilateral cooperation with an effort to hold the South Korea-China-Japan summit. To encourage Korean enterprises to invest in China, Lee began work on an agenda to promote the need for cooperation to maintain the industrial supply chain stable, hence another area of cooperation that China and Korea could pursue in the future. Has the ability to grow between.
