Mobiles & Tablets

Samsung stops making phones in Chinese plants

Reuters Seoul | Updated on October 02, 2019 Published on October 02, 2019

Announcement follows other manufacturers leaving China

Samsung Electronics Co Ltd has ended mobile telephone production in China, it said on Wednesday, hurt by intensifying competition from domestic rivals in the world’s biggest smartphone market.

The shutdown of Samsung’s last China phone factory comes after it cut production at the plant in the southern city of Huizhou in June and suspended another factory late last year, underscoring stiff competition in the country.

The South Korean tech giant’s ceased phone production in China follows other manufacturers shifting production from China due to rising labour costs and the economic slowdown.

Sony also said it was closing its Beijing smartphone plant and would only make smartphones in Thailand.

Samsung’s share of the Chinese market shrank to one per cent in the first quarter from around 15 per cent in mid-2013, as it lost out to fast-growing home-grown brands such as Huawei and Xiaomi, according to Counterpoint.

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Published on October 02, 2019
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