Samsung ceases smartphones production in China


Korean Electronics giant Samsung has finally bowed to Market pressure in China as it has now ceased smartphone production in the World’s largest phone market. The Electronics major had a few months ago started cutting down production and even laid off staff at its production plant in the southern city of Huizhou, and on Wednesday finally announced the total closure of the plant.

Samsung in a statement to Reuters confirmed it halted all production at its last plant in China “at the end of September.” The “difficult decision” was made in a bid to boost efficiency in China as its local smartphone business failed to show signs of growth.

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Reuters further confirmed that Samsung will move all its “production equipment to other global manufacturing sites, depending on its production strategy based on market needs.”Apparently, Samsung might be mulling ramping up its production capacities both in  Vietnam and India.
That doesn’t mark the end for the Korean firm in China. The firm will continue selling both premium and low-end devices in the World’s largest phone market. Premium devices like the Galaxy Notes and S series will come into China from other plants across borders. And will ramp up ODM devices manufactured under license by Chinese companies.
The decision to move out of China became necessary following its declining sales in the country. Samsung presently only enjoys a 1% market share in China down from a respectable 20% it enjoyed back in 2013. This is due to increased competition from local brands like  Xiaomi, Huawei, and Oppo.
Samsung inst alone in this. Sony has also recently shut down its Beijing smartphone plant for its smartphone plant in Thailand.


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