New Delhi: Leading mobile company Samsung Electronics Co Ltd on Wednesday announced that it is shutting its telephone production in China, due to gruelling competition from rival homegrown companies in the largest smartphone market.
Notably, in June, Samsung had cut down production after suspending its second factory since last year, in Huizhou in South China. As a result, the South Korean tech giant decided to close its last standing factory due to increasing stakes and high competition in the country’s domestic market.
Moreover, the company’s share in the Chinese market shrunk to one per cent in the first quarter of this year, falling from 15 per cent in mid-2013. According to reports, two of the fastest-growing home companies superseding Samsung were Huawei Technologies and Xiaomi Corp.
Last month, Samsung Electronics fell sharply in a global corporate social responsibility ranking marking its worst performance since the institute started compiling such data in 2012.
What used to be the top-ranking tech firm for mobile production had to make the difficult decision to boost its efficiency. The South Korean firm said that it will re-allocate its production units to a different manufacturing site, depending upon market needs around the world.
Samsung has not specified if it plans to return to China eventually if the market climate turns less harsh.