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Samsung Maintaining Manufacturing in South Korea


The Samsung Company was determining moving production and manufacturing after the novel coronavirus infected one of their Operating Plants in South Korea. The Gumi Plant has been shut down since early March, with workforces being informed to remain under self-quarantine conditions for their safety and the communities. Executives with Samsung were considering switching production over to Vietnam, ensuring that supply volumes on the Galaxy Z Flip didn’t falter.

The popularity behind the Galaxy Z Flip increased drastically since its initial launch. The demand for Flip Phones has returned, and Samsung wants to make sure the novel coronavirus doesn’t postpone delivery dates. It’d make sense to why the Samsung Company was considering the manufacturing switch to Vietnam. That won’t be required moving forward, as the coronavirus outside in South Korea has improved drastically in the last week. April 30th marked the date that this nation wouldn’t report any new cases. It’s prompted Samsung to reverse its decision, avoiding a costly conversion of operating facilities.

Some analysts determined the decisions of Samsung show an ignorant company. The chances for a secondary outbreak to occur throughout its manufacturing facility in South Korea is extensively high. However, PR Representatives have clarified workforces are being forcibly told to wear face masks and engage in sanitary methods. These protocols don’t guarantee that the novel coronavirus won’t spread. Analysts believe that Samsung should still consider relocation of operating facilities to Vietnam, with their coronavirus outbreak being minimal. The European Union or North America could also be regarded as relocation sports, possibly avoiding the virus living inside newly produced handsets.

Declining Sales

Samsung Smartphones have had their sale valuations deplete by substantial estimates. Statistics indicate that sales have dropped by 98% since the novel coronavirus unfolded worldwide, forcing the large-scale corporation to limit their production schedules by 50%. Additional threats are facing their Smartphone Division, with the supply of necessary components being delayed for prolonged periods. Samsung could find themselves unable to produce the Galaxy Z Flip by Q3 2020. This could impose additional delays on devices slated for the 2021-22 Fiscal Year, which would include the Samsung Galaxy S30 and S30+.