, ,

Samsung looking towards Vietnam for the manufacturing of its smartphones

SamsungA new report sheds light on the increasing labor costs in China and the impact it is having on a tech giant like Samsung. As a result of the rising labor costs in country, Samsung has reportedly decided to open units in Vietnam for the manufacturing of its smartphones. Manufacturers like Intel and Nokia are already outsourcing manufacturing out of Vietnam as the labor costs there are said to be one thirds of that in China. Samsung’s manufacturing unit will apparently start churning out over 120 million smartphones by 2015 with devices set to come out of the factory from February 2014 on a small scale.

This will mean increased profit margins for Samsung as it will save big on labor costs. But will this mean future Samsung smartphones will cost less? Probably not, as Samsung would look to do anything to increase profit margins like any other major corporation. We’re guessing Samsung’s high end flagships will still be manufactured in China while only the low end feature phones and other midrange devices will be manufactured through Vietnam. We can expect an official word from Samsung regarding this massive shift in the coming days.

Source: Bloomberg

Via: Android Beat