14 DAY TRIAL // Samsung is selling a lot of smartphones every year, but the company would not have been so profitable had it not been for the cheap workforce that enables it to maintain quite a high profit margin.
Well, it appears that the South Korean company wants to make even more money, or at least Samsung doesn’t want to lose any profits coming from poor sales of some of its high-end products.
According to a report by Bloomberg, Samsung plans to shift its smartphone line of production from China to Vietnam for cheaper labor.
The reason behind Samsung’s decision to relocate its smartphone business from China lies in the fact that the company wants “to secure even lower wages and defend profit margins as growth in sales of high-end handsets slows.”
Samsung has already built a $2 billion plant in Vietnam, which has been confirmed to begin operations sometime in February 2014. However, the factory will not reach full capacity until later in 2015, when it will be delivering around 40% of Samsung’s smartphone production.