February 1, 2025

Samsung benefits from the crisis in China, other companies face a major loss

samsung coronavirus

Samsung has the honor of being the largest smartphone sales company in the world, but in recent years, the performance of Huawei and Apple has put the South Korean company at risk of being snatched away.

samsung coronavirus

However, Samsung seems to be the biggest beneficiary of the production problems for Apple and other companies with the spread of the Novel Coronavirus in China, and its plans to manufacture smartphones in the country is under a threat radar.

According to Reuters news agency when the production of Apple and several other companies was affected by the Coronavirus, Over 50% of Samsung’s smartphones are manufactured in Vietnam, and the company has experienced a limited impact from the crisis in China.

Apple announced on Monday (February 17th) that it would fail to meet its revenue targets during the quarter, due to the Coronavirus affecting the sales and manufacture of devices in China.

coronavirus affect

It should be noted that most of Apple’s iPhones are manufactured in China while sales are also high there. On the other hand, the Chinese company Xiaomi said last week that sales of its devices are likely to be affected during the quarter.

Read More: The Wuhan Coronavirus will also affect the Galaxy S20 supply Chain

Huawei, another major Samsung rival company, has not announced any production problems, but experts believe it may face a major setback as it depends on the product being manufactured in China.

Many companies in China have begun to open their factories after several weeks, but due to the lack of workers and other problems, the manufacturing process is likely to be slow.

new smartphones

Samsung has in recent years adopted a strategy to manufacture devices in countries other than China and therefore does not face problems with Apple and other companies.

“Samsung is currently in a much better position than its rival companies Apple and Huawei, we are fortunate to be able to avoid the risks posed by the virus,” a person familiar with Samsung’s supply chain told Reuters.

Sources associated with Samsung’s Vietnam operation warned that if the virus spreads for long periods of time, then Samsung could also have a negative impact as the company acquires several components from China.

coronavirus people

Samsung has to rely on a Chinese manufacturer to manufacture some low-cost phones. “We are doing our best to minimize the impact on the operator,” the company said in a statement.

Read More: Breaking: MWC 2020 Canceled because of the Coronavirus

Samsung ended the process of manufacturing smartphones from China last year, as its market share remained unchanged. Interestingly, other companies being affected by the virus will also have a negative impact on Samsung as the South Korean company provides memory chips and displays for Apple’s iPhones.

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