Coronavirus Could Not Hit Samsung!

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Coronavirus has created panic all over the world. The virus, which caused hundreds of people to die, also deeply affected companies. Many technology giants like Apple are facing negative consequences due to the Coronavirus, which negatively affects production and shipments in China. On the other hand, there is a company that is not very affected by Corona; Samsung. Coronavirus has not revealed a negative report card for Samsung for now.

Coronavirus did not create a negative picture for Samsung

Unlike Apple and many other companies, Samsung produces a significant portion of its smartphone models in Vietnam. Vietnam, which is not very affected by the Coronavirus, is now making Samsung smile.

Apple previously said that the Coronavirus is effective in both sales and production, and this directly lowers its revenue targets. Another company, which announced that it could decrease its sales with the quarter to close in March, was Xiaomi. Huawei has not announced any manufacturing problems yet. However, analysts say that significant negative effects will also occur on the Huawei front.

Many Chinese and foreign companies have started reopening Chinese factories that have not been used for weeks. However, production has been reduced to a minimum due to workers and some other problems.

While these are happening on the Chinese front, things are going well on the Samsung front, which realizes most of its production in Vietnam. Samsung has transferred the Chinese market to its competitors in recent years. This helped reduce the effects of the Coronavirus.

Speaking to Reuters about Samsung ‘s supply chain, a man said that Samsung was positioned better than its tough competitors such as Huawei and Apple to throw the virus out. He also stated that the virus put China at risk and Samsung was lucky to be able to escape the risks. Another source also highlighted that Samsung is relieved, even if it doesn’t make a statement for now.

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Reuters’ sources are not limited to these. Two sources familiar with the company’s Vietnam operations pointed out that if the virus epidemic continues, Samsung, which provides resources to many components from China, may also feel the effect of the virus.

The company said in a statement that it is doing its best to reduce the impact of the virus on operations.

According to TrendForce data, Huawei reduced its production in the first quarter by 15 percent and Apple by 10 percent. In Samsung, this rate is only 3 percent.

Samsung ended the production of smartphones in China as its market share dropped to almost zero. It started production in Vietnam in 2009. The reason for this is cheaper labor and government incentives. With the effect of all this, the company aggressively increased its production.

Apple produces most of the iPhone models in China through Foxconn in China.