South Korean mobile phone manufacturer has ended its production in China, due to the competition it is facing in the local market of the country. Samsung has announced the shut down of its last manufacturing plant in the Huizhou city of China.
Samsung started cutting its production in china a long time ago, at first the production of phones was terminated in April 2017 by Shenzhen Samsung Electronics Telecommunication and in December 2018 by Tianjin Samsung Telecom Technology.
In June Samsung started firing workers of Huizhou plant situated in the Guangdong province of China in June. Samsung also announced to fully shut down the plant by the end of September. It was its first plant in the country, established in December 1992.
The company was having bad time in china as their share in the market was left at only 1 percent in the first quarter of this year. In the official statement on the end of Huizhou plant production, Samsung said,
“As part of ongoing efforts to enhance efficiency in our production facilities, Samsung Electronics has arrived at the difficult decision to cease operations of Huizhou Samsung Electronics Telecommunication.”
The production in Samsung’s Huizhou plant is expected to be distributed to factories in India or Vietnam, and mobile phones manufactured in China by Samsung Electronics Huizhou are known to be distributed between two factories in Vietnam.
Samsung’s share of the Chinese market started shrinking from 15% in mid-2013 to 1 percent in the first quarter of this year. An analyst at Cape Investment & Securities said
“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.”
Samsung, the world’s top smartphone maker, said that due to the difficult time, it has taken this tough decision in a bid to increase efficiency. It added it would continue sales in China
“The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs.”
