Recently, Samsung has been changing its pricing strategies like socks, trying to cope with the pressure of the competition, which is reducing the price tags of its smartphones as much as possible. The South Korean manufacturer thus resorted to a rather drastic decision, namely to use the ODM production method. In practice, this means that in terms of the production process itself, the quality of the products will decrease slightly, but the company will be able to significantly reduce the price. Thanks to this, both production costs and the final price of the device will be reduced, which is an ideal solution in the case of low-end models. In addition, ODM partners in China were affected by the coronavirus pandemic, which did not make the situation much easier for Samsung, however, production is returning to normal and the manufacturer can once again focus on the implementation of its plans.
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If you don't know what ODM means, in short it is a different method of manufacturing smartphones. While in the case of more expensive and premium models, Samsung monitors the quality of production itself and all assembly takes place in internal factories, in the case of ODM, the company transfers all powers to partners in China, who can produce the device significantly cheaper and in many cases with lower quality. However, in the case of low-cost models, this significantly reduces the price, making the phone more accessible to the mass audience. Just look at the model Galaxy M01, behind which stands the Chinese manufacturer Wingtech. Samsung subsequently just stuck its logo on the smartphone and sells it with a price tag of 130 dollars, which is aimed mainly at users in countries such as India or China. We'll see if the tech giant succeeds in implementing its plans.
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