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Samsung closes its smartphone factory in China: Report

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Samsung closes its smartphone factory in China: Report

Samsung Electronics will shut its last remaining handset factory in China at the end of month, the technology group said Wednesday, marking its exit from the increasingly competitive Chinese market. A report suggested that poor phone sales in Chine were the main reason why Samsung ended manufecturing in the country.

in 2017 the Huizhou factory made 64 million phones, a significant fraction of Samsung’s global output of 394 million. In 2011, this factory made 70 million phones while the one in Tianjin produced 56 million.

Its market share has shrunk to 1% as Chinese consumers turn to local brand for affordable device and to Huawei and Apple for premium models, according to Park Sung-Soon, an analyst at Cape Investment & Security.

The company remain the world’s leading producer of smartphones, shipping about 290 million units per year. It once captured 15% of China’s smartphone market—the biggest on the planet.

Samsung said that is had taken a difficult decision in a bid to boost efficiency. But the South Kroean giant has clearly mentionted that it will continue selling phones in China.

However, the brand will now manufesture phones in the countries. One of the world’s top phones brand, Samsung, is already building half of its handset in Vietnam. Samsung started moving capacity to Vietnam starting in the late 2000s. The Southeast Asian country has become a global smartphone production hub for samsung, which employs about 200,000 people in Vietnam.

Via: GSMAreana

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