Approximately 20% of Samsung phones will be designed and manufactured by a Chinese company, reports the Reuters news agency, quoted by Mediafax.
Wingtech factories will handle the design and production of 20% of the phones that will carry the South Korean Samsung brand. The South Korean company claims that it will closely supervise its partner's operations in China so that the quality of devices bearing its brand is high.
The decision was made by the world's largest smartphone maker to cut costs and counter rivals Huawei and Xiaomi, to which Samsung is rapidly losing market share, especially in Asia.
Wingtech also produces smartphones for its big rivals Samsung, Huawei and Xiaomi.
According to Reuters, Samsung wants to ship 60 million devices made by partners like Wingtech next year. "This is an inevitable strategy rather than a good strategy," a source told Reuters.
Wingtech can cut component prices by 30% for Samsung, which will be able to deliver cheaper devices to emerging markets such as China and India.
The Chinese company will not produce high-end devices, but only cheap and mid-range models. The devices will be sold in Southeast Asia and South America.
The first Samsung brand smartphone model produced by Wingtech was the Galaxy A6S, available on the Chinese market.
Wingtech Group was founded in 2006 and is able to produce from A to Z phones and other smart devices. The Chinese company has a research and development center in Shanghai, an operations center in Shenzen and a production center in Jiaxing city.