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Contrasting mood at handset partners of Samsung and LG

In the second half of this year, handset partners of Samsung Electronics seem tense, while those of LG Electronics feel relatively easy.

The partners of Samsung Electronics keep close watch on rumors about restructuring partners and building plants abroad, and follow-up measures to audit on the Telecommunication and Network Business Unit.

The CEO of one partner company said, “There’s a rumor that Samsung will select a few partners by each item. So we’re doing our best for delivering products on time and improving quality.”

Partner companies of Samsung are worried that Samsung may increase production at plants abroad while maintaining current level of production at the Gumi plant, and some of them even consider joining Samsung to produce abroad.

One employee at a parts supplier to Samsung in Gumi explained, “The plant operation ratio is going up with increasing handset production of Samsung. But the most crucial factor will be whether Samsung will advance into Vietnam and other countries or not.”

In particular, they are primarily concerned with personnel change in the Telecommunication Network Business unit headed by Executive Vice President Ji-sung Choi, because the personnel change in the parent company is expected to bring major changes in their partnership with Samsung.

On the other hand, partners of LG Cyon feel satisfaction with more stable production than in the past, although they are not happy about continuous decrease in parts prices. Unlike 2005 and 2006 when there were large fluctuations in production by quarter, now the order amount is stable for strategic products such as chocolate phone, shine phone, and Prada phone.

One employee at a partner company said, “Although there’s no major increase in production, it’s good that we can manage in a predictable manner.”

source

2 comments:

  1. hi maximus, i just wanted to write and say how much i enjoy your blog - there's always a wide variety of interesting articles.

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  2. Thank you for your kind words =) I am glad that you are enjoying my blog.

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