This Wednesday (22) Samsung announced the start of production of smartwatches within the Brazilian territory, with a greater focus on the Galaxy Watch Active line. The operation is being carried out by the Samsung factory in Manaus, in the state of Amazonas, and comprises the following models: 5j4s3j
- Galaxy Watch Active 2 LTE (which can access 4G and Wi-Fi networks) with a 44mm black screen;
- Galaxy Watch Active 2 LTE with 40mm screen in rosé color;
- Galaxy Watch Active 2BT (which only s Wi-Fi networks) with a 44m screen in black and silver;
- Galaxy Watch Active in black, silver and rosé colors;
- Galaxy Fit E in white and black colors.
In addition to the plant in Manaus, Samsung also has a plant in the city of Campinas (in the interior of the state of São Paulo), where it currently manufactures smartphones, notebooks, tablets, TVs and white goods (large appliances such as refrigerators, stoves, microwaves and freezers).
According to a Anthony Quintas, vice president of Samsung's mobile devices division in Brazil, the investment in the local production of smartwatches reinforces the brand's commitment to the country, in which the company has been present for some decades. Quintas also states that the company is proud to be part of the history of Brazilian technological development, and that Samsung is committed to increasingly expanding its operations within the country.
Why produce the Galaxy Watch and Galaxy Fit in Brazil 582o6v
Having its factory located in the Manaus Free Trade Zone, one of the biggest advantages that Samsung has when bringing the manufacture of its smartwatches to Brazil is in the fiscal sense, since companies located in this region are exempt from several taxes.
Among the exemptions given to factories in the Manaus Free Trade Zone are the import tax (which allows companies to purchase components manufactured in other countries without having to pay anything to customs), the export tax, the IPI (tax on industrialized products ) and a partial discount on ICMS (tax collected by the state on the circulation of goods and services). This is often reflected in a decrease in the average price of handsets in the medium and long term, as Brazilian-made models replace imported ones in stores.
Another advantage is to make the brand's products ready for the national market. One of the problems with relying on imports is that products manufactured for foreign markets do not always work completely here in Brazil — this happens a lot with imported smartphones and smartwatches, which often do not all the 4G frequencies used here in Brazil, which causes these devices to be without signal in places that, theoretically, should be working.
Thus, having its own manufacture in the country, it is guaranteed that the products will be ready to work in the conditions that exist here, which also helps to expand the existing market for these devices. This is one of the main reasons given by the Xiaomi about why she is interested in manufacturing her smartphones here in Brazil.
And Samsung's decision to manufacture its smartwatches here in Brazil can be easily explained by the data collected by IDC (one of the world leaders in market intelligence), which points out that, in the first quarter of 2020, the sale of smartwatches in Brazil increased by 218% when compared to the same period of the previous year.
The same trend can be seen in the fitness bracelet sector, a segment in which the Galaxy Fit E. The increase in sales in this sector was even greater, having grown by 321% in the first quarter of 2020 compared to the same period in 2019.
With the market showing clear signs that the Brazilian consumer is increasingly looking for smartwatches and fitness bracelets, the start of the manufacture of these equipment by Samsung within the country can help to put the brand at a certain advantage over competitors.
Source: Samsung
