Samsung mobile phone to local production temporarily will focus on to Chinese

According to foreign news reported on November 13th, in the mobile phone manufacturers will focus to have abundant cheap labor in developing countries under the environment, Samsung Electronics announced to continue to adhere to the localization strategy of mobile phone production.

Samsung said on Sunday that the plan would raise its South Korean mobile phone factory Gyeongbuk Kumi production capacity of 20%, is expected next year will reach 100 million.

One of the company refused to disclose the name of the senior official said, "we are currently working with contractors, expand the factory annual production capacity of less than. Through cooperation, the plant next year's mobile phone production scale will be increased from the current 80 million to 100 million. Mobile phones are different from flat panel displays and semiconductor products, because the latter often requires long-term investment planning and a lot of money to improve production capacity. By strengthening investment, we only need a few months to quickly improve the annual production capacity of mobile phones."

In fact, Samsung Kumi production capacity has increased year by year, and in 2004 2003 the mobile phone factory production capacity reached 50 million and 64 million, while last year the figure reached 80 million. In contrast, due to the inability to profit, Samsung Electronics announced last week in September this year, has closed its Mexico Warner phone factory.

Samsung's move just to enter the developing countries, the use of cheap labor advantage to reduce the cost of mobile phone manufacturers in stark contrast.

At the same time, Samsung plans to set up a new plant in India, the plant is expected to reach 1 million mobile phone production capacity, but industry analysts pointed out that this did not deviate from the company's localization strategy. Analysts said Samsung India factory investment scale is small, and the new factory will be the company's old equipment factory Kumi, products are only local sales.

Li Jitai, President of Samsung's telecommunications business is acting as a pioneer in the company's localization strategy. In the early of this month at Samsung future development strategy seminar, Li Jitai said the company will expand the scale of production in South korea. Li Jitai said, "we are now for the factory to install a new production line Kumi, at the same time will increase the production capacity of mobile phone. At the same time, we will not shift the focus to China for the time being, as this will speed up the hollowing out trend. In any case, we will try our best to improve the Kumi factory's production capacity, and cultivate excellent Seoul and Gyeongbuk contractors."

Currently, Samsung Electronics has a total of three overseas production base, located in Tianjin, Shenzhen and Brazil Chinese Campinas, total annual production capacity of three mobile phone 20 million. The company, which accounts for about 13% of the global mobile phone market, is the world's third largest handset maker after NOKIA and Motorola.