Due to Corona virus production of companies reduce, beneficial for Samsung?

Due to Corona virus production of companies reduce, beneficial for Samsung?

Samsung has the honour 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.

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 Vietnam more than a decade ago.

According to news agency Reuters, when Apple and several other companies' production has been affected by the Coronavirus, 50 percent of Samsung's smartphones are made in Vietnam and the company faces limited effects 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.

It should be noted that most of Apple's iPhones are manufactured in China, while they are also sold 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.

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

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

Samsung has in recent years followed the strategy of developing 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.

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.

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 and other companies' phones, Apple and Huawei. Its 5 most important users include


Coronavirus Samsung

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