Samsung has officially ended its mobile phone production in China, according to an official statement from the company. According to Reuters, Samsung has shut down its last China phone factory. It had earlier cut production at the plant, which was located in the city of Huizhou in June. The decision comes as Samsung moves more for its smartphone manufacturing to markets like Vietnam and India.
Samsung has also lost market share in China in light of growing competition from players like Huawei, Xiaomi, Oppo and vivo. The company is no longer among the top five vendors or even top 10 vendors in China. Recent data for the second quarter of 2019, showed Huawei on top in the China market followed by vivo, Oppo, Xiaomi and Apple. Samsung doesn’t even find mention in the overall top ten and has a share of 1 per cent in the market.
“The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs,” Samsung said in a statement, according to Reuters. It further added that the decision to end production in China was taken to boost efficiency, though it did not specify the number of people working the plant.
According to a report on Nikkei Asia, Samsung had shifted production to Vietnam is in view of rising labour costs in China. In Vietnam, around 200,000 people are employed in Samsung’s phone production business, and the report said that half of Samsung’s roughly 292 million handsets are manufactured in the country.
In July this year, Samsung had also announced the opening of the world’s largest mobile phone factory in Noida, Uttar Pradesh. The plant has a maximum capacity of manufacturing 120 million phones per year. It also has a factory in Tamil Nadu in India for mobile manufacturing.
The new 35-inch acre facility was opened in Sector 81, Noida, Uttar Pradesh. This was in addition Samsung’s existing manufacturing facility in Noida. The company has had manufacturing in India for over two decades.
With agency inputs