Foreign media: New crown outbreak plagues Apple rival Samsung or will benefit

BEIJING, Feb. 18 (Afp) – Samsung Electronics will be the main beneficiary of the news after rival Apple announced production delays on Monday,media reported. Samsung has been betting for Vietnam for the past decade on low-cost smartphone manufacturing. In recent years, Samsung has largely ceded the Chinese market to rivals.

Media: New crown outbreak plagues Apple rival Samsung or will benefit

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“Samsung may be better able to withstand the impact of the outbreak than its powerful competitors like Apple, ” said a person familiar with the company’s supply chain. “

About half of Samsung’s smartphones are currently made in Vietnam. So far, the impact of the virus outbreak affecting Apple’s business has been extremely limited on Samsung. Apple said Monday that it may not meet its Revenue Forecast for the March quarter because of the impact the new corona virus has had on the production and sales of its iPhone products. But as things stand, many companies are starting to organize their products again.

Samsung also relies on Chinese foundry manufacturers for some low-end models. “We are doing our best to minimize any impact on our business,” Samsung said in a statement. TrendForce, a high-tech industry research consultancy, recently cut its first-quarter production forecast for Samsung by about 3 percent.

Since starting making handsets in Vietnam in 2009, Samsung has boosted its production capacity with cheap labor and generous government incentives. Samsung ended its smartphone production business in China last year, with its market share falling to near zero. Meanwhile, most of Apple’s iPhone products are made through Foxconn, a Chinese company.

Last week, Samsung unveiled three flagship Galaxy s20 smartphones and a new foldable phone.