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 labor costs and the economic slowdown.


Sony also said it was closing its Beijing smartphone plant and would only make smartphones in Thailand.
But Apple still makes major products in China.


Samsung's share of the Chinese market shrank to one percent in the first quarter from around 15 percent in mid-2013, as it lost out to fast-growing homegrown brands such as Huawei Technologies and Xiaomi Corp, according to market research firm Counterpoint.


"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," said Park Sung-soon, an analyst at Cape Investment & Securities.


Samsung, the world's top smartphone maker, said it had taken the difficult decision in a bid to boost efficiency, adding it would however 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," it said in a statement, without elaborating.


Samsung declined to specify the Huizhou plant's capacity or its numbers of staff. The factory was built in 1992, according to the company.


South Korean media said it employed 6,000 workers and produced 63 million units in 2017.


That year, Samsung manufactured 394 million handsets around the world, according to its annual report.


The company has expanded smartphone production in lower-cost countries, such as India and Vietnam, in recent years.
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The Chinese have come to be a force to reckon with

Yes, many local brands are not only giving the western companies stiff competition at home but internationally, reason why some of them would locate to low costs production countries

Huawei Mate series anyday..

okorotalkative:
Huawei Mate series anyday..

Y9prime2019 any day.

Remimadrid:

Y9prime2019 any day.

Y series na nonsense, mate series na beast mate 30pro all the way

itel m series ti take over
itel Xmax anyday

China keeps teaching other countries big lessons on how to run a country. You don't need to ban imports everytime. China increases their local production in quality and quantity, the chinese people patronise their local products and the foreign imports becomes unprofitable to the importers. The foreign producers/importers like Samsung Inc. will have no other option than to leave or reduce their prices. That's what should also happen in Nigeria.

Enu Samsung to gbe

Well Samsung over iPhone any day

Soulsymbol99:




Y series na nonsense, mate series na beast mate 30pro all the way

Yoy never use this one before. This phone is a beast.