VinSmart produces smartphones for US mobile service provider
In this article (5)
VinSmart, a subsidiary of Vietnam’s largest listed company Vingroup, has received a contract manufacturing order for two million smartphones from a major U.S. carrier.
Le Thi Thu Thuy, general director of VinSmart, without identifying the U.S. company, said Thursday at a press conference that the first consignment was sent a month ago. The phones carry the American service provider’s logo.
“This is an important step in understanding the U.S. market… before taking Vsmart phones there in future,” Thuy said.
The U.S. company has such stringent standards that despite having a team in Vietnam to supervise the VinSmart factory 24/7, it still thoroughly inspects the phones once they reach the U.S.
The contract is for four models, all of them supporting 4G.
A confidentiality agreement prohibits VinSmart from disclosing the name of its partner.
VinSmart has a plant for manufacturing 125 million phones, IoT devices, and other smart devices per year at the Hoa Lac Hi-Tech Park in Hanoi.
The brand is currently sold in three countries, Russia, Myanmar, and Spain, but the company expects to sell its Aris 5G in the U.S. by next year.
VinSmart had a 16.7 percent market share in the first quarter and surpassed Apple to become the third-largest smartphone brand in Vietnam behind Samsung and China’s Oppo.
Questions & Answers
Q.What is the primary purpose of VinSmart producing these smartphones for the US carrier?
What is the primary purpose of VinSmart producing these smartphones for the US carrier?
VinSmart is using this contract as a vital step to understand the US market. This experience will help them prepare for the future introduction of their own Vsmart phone brand into the United States.
Q.What is the scale of the initial order and VinSmart's overall manufacturing capacity?
What is the scale of the initial order and VinSmart's overall manufacturing capacity?
The initial order from the US carrier is for two million smartphones across four different 4G models. VinSmart's factory in Hanoi has a much larger annual capacity, capable of manufacturing 125 million phones, IoT devices, and other smart devices.
Q.How stringent are the US carrier's quality control standards for these contract-manufactured phones?
How stringent are the US carrier's quality control standards for these contract-manufactured phones?
The US company maintains very stringent standards. They have a team supervising the VinSmart factory 24/7 in Vietnam. Also, they conduct a thorough inspection of all phones once the consignments arrive in the United States.
Q.Which markets does VinSmart currently operate in, and what are their future expansion plans for their own brand?
Which markets does VinSmart currently operate in, and what are their future expansion plans for their own brand?
VinSmart currently sells its brand in Russia, Myanmar, and Spain. They plan to expand their own brand to the US market, expecting to sell their Aris 5G phone there by next year, following this contract manufacturing experience.