Top Electronics Brands Outsource Entry-Level Production to Focus on Premium Segments
Leading electronics brands such as Samsung, LG, Oppo, Vivo, and Voltas are increasingly outsourcing the production of entry-level products to contract manufacturers in India. This strategic move aims to free up capacity in their in-house manufacturing plants for mid-to-premium range products—a segment that has shown consistent growth over the past four years.
The shift comes as the market share of entry-level products declines, with first-time buyers either delaying purchases or opting for mid-tier options due to easy credit availability. For instance, LG Electronics India revealed in its recent filings that it now manufactures 85% of its products in-house, outsourcing entry-level refrigerators, washing machines, window air conditioners, and small TVs to third-party suppliers.
Other companies are following a similar approach. Samsung has begun outsourcing the production of entry-level washing machines, TVs, and smartphones, while Oppo and Vivo have moved some smartphone production to external manufacturers.
Source: Electronics For You
