Samsung Electronics will introduce 5G smartphones in the 200,000 won range in 2021. It has secured price competitiveness by applying the joint development manufacturing (JDM) method to Galaxy 5G smartphones.
Samsung Electronics is planning to release the Galaxy A22 5G in the second half of 2021. It is a follow-up model of the Galaxy A21 (LTE) launched in July 2020 to compete with Xiaomi's low-priced smartphones. Its retailing price is expected to be set at a level similar to the 297,000 won of its predecessor. It is Samsung's first 5G smartphone priced in the 200,000 won range and is the lowest-price Samsung 5G smartphone. The Korean smartphone giant will launch the Galaxy A32 5G in the first half of 2021 and the Galaxy A22 5G in the second half of 2021 to expand its presence in the budget 5G smartphone market.
Following the first low- and medium-priced 5G smartphone Galaxy A51 5G launched in 2020, Samsung Electronics expanded 5G smartphone models to its lower-end lineup. This is a move to cope with a price war by Chinese manufacturers. Chinese manufacturers such as Huawei, Xiaomi, Oppo, and Vivo released many 5G smartphones that cost between 100,000 won and 200,000 won.
Samsung Electronics partners with Chinese consignment companies for the development and production of the Galaxy A225G in the JDM method. Sources say that Wing Tech & Hwaqin which have experience in producing mid- and low-priced smartphones of Samsung Electronics, will be in charge of developing and producing the Galaxy A225G in the JDM method. Unlike the Original Design Manufacturing (ODM) method in which outsourcing companies are in charge of product development, design, and production, in the JDM method, Samsung Electronics is partly involved in the selection of major specifications and components. It is advantageous to cut manufacturing cost to secure price competitiveness and manage quality at a uniform level.
Samsung Electronics changed its entire outsourcing production model to the JDM method after controversy arose over its neglect of the ecosystem of downstream industries in Korea after expanding the proportion of the ODM method in production of smartphones in 2019. Of Samsung Electronics' total smartphones shipped in 2020, 20 to 30 percent were produced using the JDM method.