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Samsung May Close Mobile Phone Plant In China

Samsung May Close Mobile Phone Plant In China

Samsung is no doubt currently one of the biggest manufacturers of mobile phones in the world. Some of the flagships by the company have proven to be among the best out there today. This includes the Galaxy Note 9 that was launched recently.

The Korean giant currently has two smartphone plants in China. However, new reports have it that the company is planning to close one of them. The plant – located in Tianjin – will be closed by the end of 2018. This is due to slumping sales and rising labor costs.

According to Reuters, Samsung’s market share in China has fallen drastically over the years. From 20% five years ago, it is less than 1% today. Local manufacturers like Huawei and Xiaomi have ensured that this is so by providing amazing devices at lower prices. Already, Huawei has sold more than 100 million smartphones in 2018.

In addition to the fall in market share, Samsung is under pressure for failing to deliver quarterly profit growth in recent times. This is because people apparently prefer the local competitors’ cheaper feature-packed models.

The other plant that Samsung runs in China is in Huizhou. It does not appear that this plant will be closed with that in Tianjin. Even so, the Korean company relies mostly on facilities in India and Vietnam. Just last month, Samsung opened the world’s biggest smartphone factory outside New Delhi, India.

Reports show that while the Tianjin factory produces about 36 million units per year, the Huizhou plant produces about 72 million units. In comparison, Vietnam is responsible for nearly 240 million units. That is from the two factories there combined.

However, Samsung has revealed that nothing has actually been decided on the fate of the Tianjin plant. The company said:

The overall smartphone market is having difficulties due to slowing growth. Samsung Electronics’ Tianjin telecom enterprise aims to focus on activities that increase competitiveness and efficiency.

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About the author

Vincent

I am an Electrical Engineer by profession, and a blogger by interest. I have a special knack for Android phones.

When I am not blogging, I spend my time reading novels, seeing movies, or playing games.

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