The company said Samsung on Wednesday: she ended the production of mobile phones in China, due to affected by competition from domestic companies in the largest market for smartphones in the world.
The closure of the last factory-produced Samsung smart phones in China after the company reduced production at its factory located in Huizhou city of the south in the month of June last, has stopped the factory another at the end of last year, which confirms the intensification of competition in the country.
The production of Samsung, which is the largest producer of smartphones in the world – has stopped in China after the transfer of other companies of production from China due to rising labor costs, the economic slowdown. And those companies, Sony of Japan, which said Also: it will close its plant for smartphones in China to be the industry in Thailand. The Apple TV, still produces most of its devices in China.
And concluded that Samsung’s share of the Chinese market to 1% in the first quarter of the current year, compared to 15% in mid-2013, with the loss of that share in favor of local brands of fast growth, such as: Huawei, share, according to market research firm (counter-point).
According to the analysts, the consumers in China prefer smart phones low price produced by domestic enterprises, the flagship phones, and they prefer phones Apple, Huawei, and so the chances of Samsung revived its position there are slim.
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The company said the Samsung: it’s taken a difficult decision in an attempt to enhance efficiency. She added that it would continue sales in China. The company said in a statement: “We will treat the allocation of production equipment for the manufacturing world of the other, on the strategy of global production of our own based on the needs of the market”.
The Samsung has established another factory to be covered by in China in 1992, has been hired by 6,000 workers, and produced more than 63 million units in 2017. With reference to that Samsung has produced during that year approximately 394 million devices worldwide, according to an annual report.
It is also referred to that Samsung there in recent years to the production in low-cost, such as: India, Vietnam.