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As the coronavirus curve flattens in South Korea, Samsung abandons plan to relocate phone production

Samsung’s South Korean Gumi plant, where its premium phones like the Galaxy Z Flip are manufactured, was temporarily shut down after a worker tested positive for COVID-19. Later on, it was rumored that the company might shift some smartphone production to Vietnam, to ensure supply remains steady.
Back in March, it was reported that the demand for Galaxy Z Flip is higher than expected, with indications that the delivery dates have slipped. This explains why Samsung was eager to not let anything get in the way of production.

South Korea is beating the coronavirus

As the situation improves in South Korea, the company has reversed course. Thursday was the first day when the country reported no new domestic cases for the first time since February. On the other hand, the situation remains grim elsewhere.
Not only is Samsung not planning to relocate production to Vietnam from South Korea, but it is also apparently going to bring some manufacturing from Europe and the US to its home country.
It is also worth mentioning that according to most estimates, sales of Samsung phones have suffered because of the coronavirus. The company has apparently scaled back production by more than 50 percent.
Thus, even though Samsung might have the supply-side elements under control, demand poses a bigger threat now. The situation is expected to worsen this quarter, before heading towards recovery in the second half of the year.

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