Where is Samsung Made?
Updated: Feb 9
Samsung is one of the largest smartphone brands in the world. There is a misconception among many people that Samsung is just a mobile phone brand. In fact, Samsung is much more than a smartphone company. It was founded in 1938 by Lee Byung-Chul as a trading company. Later in the next three decades, they diversified their business and stepped into food processing, textiles, insurance, securities, and retail. Later in the 1960s, they started manufacturing electronics.
Although Samsung is a diverse brand, the main reason for its popularity today is its smartphones. Samsung smartphones are considered the best in the world.
Samsung smartphones are so popular worldwide that some recent stats show that, they sold more than 300 million units back in 2019. The number of smartphone users is increasing daily, and Samsung has a huge market share in the smartphone market. It is clear that to manufacture more than a quarter-billion devices every year; there is a need for a huge manufacturing facility.
To meet the customers' needs and fulfil the demand for Samsung smartphones worldwide, Samsung has installed its manufacturing units in different countries. Samsung is one of the pioneers of smartphones; therefore, people consider it as a reliable brand, and a vast majority trusts it.
In Which Countries, Samsung Mobile Phones Are Manufactured?
South Korea is known as the hometown of Samsung because Samsung is a South Korean Company. Its headquarters are located in Samsung Town, Seoul.
Samsung also has manufacturing facilities in South Korea; however, it only produces less than 10% of the global units. The smartphone units manufactured in South Korea are to fulfil the local demand of customers. As Samsung is a Korean brand, most Koreans prefer to use their own country's brand instead of other alternatives. This is the reason that Samsung has a manufacturing facility in South Korea. In Samsung's Korean manufacturing facility, Korean manufacturers produce mobile phones, but it also manufacturer other accessories and small electronics.
When you hear the word Manufacturing, the first country that comes in your mind is China. It is because China is known to be the global manufacturing hub. The labour in China is very cheap; therefore, many famous brands all over the world get their products manufactured in China. Even Apple, who is the largest competitor of China, gets most of its iPhones manufactured in China.
Now you might be thinking that Samsung smartphones are also manufactured in Chine, but you are wrong. Actually, Samsung closed its last manufacturing factory in China last year, and now Samsung is not doing any manufacturing in China. Samsung was manufacturing in China for several years, but now they quit manufacturing in China and stated that they did it due to China's rising costs of labour. With the increase in the popularity of Chinese brands like Xiaomi and Huawei, Samsung lost a big deal of market share in the country, and it fell below 1%. So, there was no financial sense for Samsung to manufacture its phones in China, so they quit manufacturing in China.
Vietnam is a country where most Samsung phones are made. Samsung has two factories running in the Thai Nguyen province of Vietnam. In this manufacturing facility, Samsung manufactures many other electronic devices like tablets, smartwatches, headsets, and other wearables.
Currently, the Manufacturing facility of Vietnam is producing more than 120 Million mobile phone units every year, and they are supplied to the Noth America and Europe. Samsung is planning to install another factory in Vietnam to increase the country's manufacturing capacity because the global demand for Samsung smartphones and products is increasing day by day.
India is the second-most populous country after China. Therefore Samsung has installed its largest mobile phone manufacturing factory in India. Even it is the world's largest mobile phone manufacturing facility if you talk about the production capacity. The factory was started in 2018, in Noida Utter Pardesh. Samsung announced that it would invest 620 Million USD in India to multiply the production rate. Currently, this factory is manufacturing more than 120 Million mobile phone units every year.
Most of India's smartphones go into the Indian mobile phone market because Indians are Samsung lovers, and most of their population prefers to purchase Samsung smartphones over other brands. Another reason for investing too much in India is that the import duties in this country are very high. So, to maintain a competitive edge over others, Samsung had to go for local production in this country as the Indian mobile phone market is pretty large, and Samsung generates a lot of business from here. However, Indian manufactured Samsung smartphones are also West Asia, Europe, and some countries of Africa.
You might have never heard about it, but Samsung also has a manufacturing facility in Brazil. It is because, just like India, the tax duties of Brazil are very high, so Samsung installed a manufacturing facility here to meet the local needs. Brazil's Samsung manufacturing facility is the source from where Samsung smartphones are supplies to all Latin Americans.
Around 6000 workers are working in this facility. Due to the local production, Samsung is able to maintain a competitive price in this region; otherwise, it would have been tough to maintain good prices where the import duties and taxes are so high.
Indonesia is also one of the manufacturers of Samsung Smartphones. Samsung recently decided to start making their mobile phones in Indonesia. Samsung's main focus was to fulfil the local demand.
The Indonesian manufacturing factory produces almost one million mobile phone units every year, and it is enough to fulfil the local demand.
It is clear that most of the Samsung mobile phones are being manufactured in Vietnam and India. Even Samsung has decided to shift the load of Chinese factories to India and Vietnam. So, now both these counties would be manufacturing even more units each year as they are the largest suppliers of Samsung smartphones.
Which Country Manufactures The Best Samsung Smartphones?
There is a misconception among people that there is a quality difference between the manufacturing of different countries. Samsung has clearly stated several times that all manufacturing facilities in different countries are their own. They have set a standard for smartphone manufacturing, which is strictly followers in all countries. It means that it doesn't matter if you have a Korean Manufactured Samsung Smartphone or you are having a Vietnam manufactured Samsung smartphone. There won't be any difference at all in both smartphones. Both of them will have the same quality and the same features even if they are manufactured in different countries.
Why Samsung Needed To Change Its Manufacturing Priorities?
Samsung has been leading the smartphone market for over a decade, but some Chinese smartphone manufacturers have been having a very tough time with Samsung for the past few years. Previously Samsung was known to produce flagship devices as there were a few smartphone brands earlier, so people had no choice except to purchase flagship devices that were quite expensive. But then suddenly, many Chinese brands jumped into the market and started producing budget-friendly smartphones. Their devices were considerably less expensive as compared to Samsung, but still, they were pretty good. So people started to shift towards those brands.
Therefore, Samsung had to reconsider their manufacturing priorities and started producing mid-range devices. They even had to stop their manufacturing in China because due to increased competition. A lot of Chinese brands captured the local market, and Samsung had to quit that market. To prevent happening from other counties; also, Samsung made several amendments to its manufacturing priorities.
We are sure that now many of your confusion would be cleared regarding Samsung manufacturing. Samsung is a Korean brand, but most of its manufacturing is currently carried out in India and Vietnam.