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Samsung MX reportedly considers Chinese DRAM for low-end phones in China
Samsung Electronics’ Mobile eXperience (MX) division may begin using Chinese-made DRAM for low and mid-range smartphones in China to reduce costs amid rising component prices and to enhance its market position, where it currently holds only 0.6% share.
Key points
- Samsung MX is considering switching to Chinese DRAM to cut costs.
- The shift is influenced by rising component prices impacting margins.
- The move aims to enhance Samsung's competitive position in China's smartphone market.
- Samsung's market share in China has dropped significantly to 0.6%.
- Details on potential Chinese suppliers or final procurement decisions are still unclear.
Why it matters
- This decision reflects ongoing trends of cost-cutting in smartphone manufacturing.
- It connects to a broader trend of supply chain diversification and regional sourcing.
- Rising component costs have been a significant issue across the tech industry.
- Samsung's move may impact its competitiveness amid a broader decline in the market.
This strategic consideration could help Samsung regain competitiveness in China's tough market while navigating cost challenges amid increasing pressures on margins.