https://www.khan.co.kr/article/202604282142005
Samsung Electronics, outsourcing of dishwashers, microwaves, etc.
Business restructuring amid low-price offensive from Chinese companies
Improving profitability... focusing on 'Bespoke'
Samsung Electronics has decided to start a business restructuring that converts some home appliances such as dishwashers and microwaves to outsourced production. This is interpreted as an effort to improve profitability in the home appliance business, which is struggling due to the convergence of Chinese companies' low-price offensive, rising memory prices, and the Middle East conflict.
(...)
The business restructuring plan includes closing some home appliance production lines such as dishwashers and microwaves and converting them to outsourced production. The company also plans to close the Malaysia plant that has served as an overseas production hub since 1989.
Samsung Electronics' decision to outsource production for some product categories with low profitability is based on the judgment to transform the home appliance business into a profit-based growth business amid rising costs of components such as semiconductors and logistics fees, and growing uncertainty due to competition with Chinese companies.
