Samsung Electronics Co. said Tuesday that its mobile production facilities in Taiwan, India and South Korea will close on Aug. 30, making way for Apple Inc. to compete directly with the Korean tech giant.
Samsung said that its existing mobile products will still be made in its existing production facilities.
Samsung said it expects the affected companies to sell their devices at a discount to Apple, which will pay them a flat monthly royalty rate.
The two companies will continue to work on the joint efforts to bring smartphones and tablets to consumers in the future.
Apple Inc. and Samsung Electronics announced in March that they would collaborate to bring a range of products to consumers, including an Apple TV set-top box, an Apple Watch, and an iPhone.
Apple and Samsung declined to comment on the impact of the shutdowns on their business.
Apple Inc., which has more than $1.4 trillion in market capitalization, said last month it is exploring ways to sell more devices in the U.S. in the coming months.