Samsung is planning to invest as much as $3 billion into mobile device production in Vietnam, according to a Wall Street Journal article by Jonathan Cheng. It’s part of an effort to cut production costs in a tightening smartphone market.
With smaller companies like Meizu cutting into the market with cheap-end smartphones, and decreasing technological costs allowing even upstarts like Xolo to install biometric fingerprint scanners into their mobile phones, market giants like Samsung are losing market share and looking to stop the hemorrhaging. This latest move from Samsung comes on the heels of a newly-released smart watch intended to head off next year’s Apple Watch, and rumors of a coming reboot of the company’s hallmark Galaxy line of smartphones – a combination of activity that could be read as calculated diversification, or wild, panicked flailing.
While Samsung struggles to find its way through these market changes, smaller outfits are finding opportunities; Chinese computer technology developer Lenovo recently purchased the floundering Motorola cellphone company and has indicated its intention to use the companies’ established brand recognition to get some leverage in the low-end smartphone market. It’s a fast-changing field, and all concerned parties are wise to adapt quickly.