Samsung to Stop Mobile Phone Production in China


Samsung will stop its mobile phone production in China as said on last Wednesday because of intensifying competition by domestic rivals in the biggest smartphone market worldwide.

The production was cut at the plant in the southern city of Huizhou in June which was the Samsung’s last China factory. And they suspended another factory late by this year’s last. This is happening due to big competition in the country.

Due to rising labor cost and economic shutdown, the South Korean tech giants ceased the mobile production in China.

 

Sony is also on the verge of shutting down its smartphone in Beijing and would make their smartphones in Thailand only.

But Apple still makes most of their products in China.

Samsung lost the competition to China’s homegrown brand; Huawei and Xiaomi while Samsung’s share in the Chinese market lost 1% from the first quarter from 15% in mid-2013, according to the market research firm counterpoint.

According to Park Sung-soon which is an analyst at the Cape Investment and Securities, “In China, people buy low-priced smartphones from domestic brands and high-end phones from Apple and Huawei. Samsung has little hope there to revive its share”.

The production equipment will be reallocated in other manufacturing sites around the globe.

According to South Korean media: The plant in Huizhou was built in 1992 and it employed 6,000 employees and manufactured 63 million units in 2017. But this year Samsung manufactured only 394 million phones all over the world.

In recent years, the company has spread their smartphone manufacturing in lower- cost countries like; Vietnam and India.

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