Samsung Ends Mobile Production In China



Samsung has officially ended its mobile phone production in China, Sources have confirmed about the  challenge faced from domestic rivals in the world’s biggest market. It had earlier cut production at the plant, which was located in the city of Huizhou in June. The decision comes as Samsung moves more for its smartphone manufacturing to markets like Vietnam and India.

The shutdown of the company’s last factory comes after it cut the production at the plant in the city of Huizhou in June and suspended another factory last year, giving the same reason. Recent data for the second quarter of 2019, showed Huawei on top in the China market followed by vivoOppoXiaomi and Apple. Samsung doesn’t even find mention in the overall top ten and has a share of 1 per cent in the market.

Apart from Samsung, Sony also announced a complete shutdown of manufacturing smartphones in China, saying it will make phones in Thailand instead. The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs,” Samsung said in a statement, according to Reuters. It further added that the decision to end production in China was taken to boost efficiency, though it did not specify the number of people working the plant.

With the arrival of companies like Xiaomi, Vivo, Huawei, etc. Samsung’s holds very less percent of market share in china. Samsung had shifted production to Vietnam is in view of rising labour costs in China. In Vietnam, around 200,000 people are employed in Samsung’s phone production business, and the report said that half of Samsung’s roughly 292 million handsets are manufactured in the country.

On the other hand, Samsung has already expanded smartphone production in lower-cost countries, such as India and Vietnam in the recent years.

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