Why Samsung has closed the mobile factory in China?

Why Samsung has closed the mobile factory in China? South Korean company Samsung has shut down its mobile phone production factory in China.

Due to intense competition with Chinese smartphones.  Samsung has stopped producing smartphones in China. which is the world’s largest smartphone market. Samsung’s production of smartphones from China has stopped. With Samsung closing its last smartphone manufacturing factory in Hoizhou city in southern China. Samsung also shut down another smartphone factory in China late last year.

With the increasing labor wages and economic sluggishness in China. Other producers have also moved to relocate their factories in China. Earlier, Sony also announced that it would close its smartphone factory in China and produce smartphone in Thailand only.

However, US company Apple still produces the majority of its devices in China.

Remember, Samsung’s smartphone share in the Chinese market is 5 percent. Which was 15 percent in 2013. Samsung’s market share has shrunk with the rapid expansion of local smartphone brands like Huawei and Xiaomi in the Chinese market.

Samsung has been affected by the fact that the Chinese have chosen different domestic brands for the cheapest smartphones and the iPhone and Huawei for the expensive price.

Samsung has made the unpleasant decision to shut down smartphones in China to boost its efficiency. But Samsung will continue to sell its smartphones in the Chinese market. Samsung said that with the closure of its smartphone manufacturing factory in China. The manufacturing equipment would be taken to production factory in other parts of the world as per requirement. Samsung’s factory in Huizhou was founded in 1992. Last June, Samsung cut the capacity and staff of the factory. From that factory, Samsung built 6 million 30 million smartphones in 2017 alone and employed 6,000 people. This year, Samsung produced nearly 39 million smartphones worldwide. Remember, recently Samsung has expanded its production centers in low-paying India and Vietnam.

[Also read this: Samsung to introduce Galaxy Fold 2, know when will launch]

Why Samsung has closed the mobile factory in China?

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