Samsung has a manufacturing facility in China, located in Huizhou city of Guangdong province. A few months back, the company reduced the output of its last phone factory in Huizhou. Now, Samsung has completely shut down its only smartphone factory in the country. A report by Reuters suggested that poor phone sales in China were the main reason why Samsung ended manufacturing in the country.
Counterpoint revealed that Samsung’s share in China has shrunk to 1 percent in the first quarter from around 15 percent in mid-2013. The reason behind this is being stated that Samsung lost out to Chinese brands like Huawei and Xiaomi. “In China, people buy low-priced smartphones from domestic brands and high-end phones from Apple or Huawei. Samsung has little hope there to revive its share,” said Park Sung-soon, an analyst at Cape Investment & Securities.
“Samsung said it had taken a difficult decision in a bid to boost efficiency.” But the South Korean giant has clearly mentioned that it will continue selling phones in China. But the brand will now manufacture phones in other countries. One of the world’s top phone brands, Samsung, is already building half of its handset in Vietnam. Last year, it expanded its production capacity in India due to the lower cost of manufacturing there.
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“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. The company declined to reveal the current Huizhou plant’s capacity or its numbers of staff. “South Korean media said it employed 6,000 workers and produced 63 million units in 2017,” the cited source reported. Besides, Samsung is not alone, Sony too ended its Beijing smartphone plant earlier this year.