Samsung to cut phone production in Korea

Samsung, currently the world’s second largest phone maker, intends to expand the production of its low and mid-end handsets, in an attempt to get closer to Nokia’s leading position.

To do that, Samsung will reduce phone production in its homeland, South Korea, where manufacturing costs are high.

Quoting an inside source, Telecoms Korea says that Samsung intends to reduce the local production to 23% of the total, and increase the production in countries like China, India and Vietnam – known for their relatively low production costs.

samsung-gt-s3500-affordable

(Samsung S3500, an affordable slider)

Back in 2005, Samsung’s largest domestic production base, the Gumi plant, manufactured 74% of the company’s phones. Over the years, the percentage has decreased, reaching 34% in 2008. Well, now the Gumi plant will make even fewer phones, probably to the joy of Sammy’s factories outside Korea.

Author: Ilinca Nita

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