Mashable: Samsung's increasing dependence on outsourced production for its affordable phone range is becoming more apparent. As per The Elec, the renowned South Korean technology company is anticipated to manufacture 67 million smartphones in 2024 through Chinese ODMs (original design manufacturers) and JDMs (joint device manufacturers).

Samsung to outsource a fifth of its smartphone production to Chinese ODMs, report says https://t.co/yxjfu85D5F pic.twitter.com/Zw5Z2WrIBO — Vishal Rangade (@VRangade) November 18, 2019

This marks a significant rise from the 44 million units produced in 2023 and accounts for a substantial 25% of Samsung's total smartphone production goal of 270 million units for the current year. The report also suggests that Vietnam will have a role in Samsung's outsourcing strategy, with an approximate 28 million units set to be manufactured in Vietnamese facilities.

Samsung has been heavily outsourcing in order to lower costs and provide more competitive pricing for its budget phone lines. The company started outsourcing production for affordable phones in 2019.

While this strategy does help Samsung reduce production and R&D expenses, there are concerns about potential quality compromises that may arise from outsourcing.

ODM partners, aiming to increase their profit margins, might compromise on materials or components, which could negatively impact the overall user experience.

For example, the Samsung Galaxy A03s is rumored to be an outsourced phone. Despite receiving praise for its battery life and usability enhancements, it has also faced criticism for its subpar build quality and slow performance.

Samsung's approach appears to be striking a chord with consumers, despite the possible downsides. The company stood out as the sole Android manufacturer to have phones featured in the top 10 best-sellers for both 2022 and 2023.

Samsung to outsource a fifth of its smartphone production to Chinese ODMs, report says https://t.co/yxjfu85D5F pic.twitter.com/Zw5Z2WrIBO — Vishal Rangade (@VRangade) November 18, 2019

By leveraging outsourcing to achieve cost-effectiveness, Samsung is able to offer budget-friendly Android devices that are well-received in the market. It will be intriguing to observe how Samsung navigates the delicate balance between affordability and quality control in its outsourced phones going forward.