SEOUL (Reuters) – Samsung Electronics Co Ltd (005930.CS is closed on the mobile phone production in China, it said on Thursday, hurt by intensifying competition from domestic rivals in the world’s largest smartphone market.
FILE PHOTO: The logo of Samsung Electronics is seen at its office in Seoul, south korea, south africa, South Korea, January 7, 2019. REUTERS/Kim Hong-Ji/Photo File
The conclusion of Samsung’s latest China phone to factory and after it is cut from the production at its plant in the southern city of Huizhou in June and a floating one of the other plant at the end of last year, underscoring the intense competition in the country.
The South Korean tech giant has stopped using the phone and the production in China, following the other manufacturers are shifting production from China due to the rising costs of labor and economic growth.
Sony also said it is closing it’s Beijing and the smartphone plans and the only smartphone in the kingdom of Thailand.
But Apple’s (AAPL.(O) it is still the most important product in China.
Samsung’s share of the Chinese market fell by 1% in the first quarter by approximately 15% in mid-2013, when it lost the fast-growing home-grown brands such as Huawei and Xiaomi Corp (1810.HK), according to market research firm Counterpoint.
“In China, people are buying low-cost smartphones from domestic brands, and high-end phones from Apple and Huawei. The Samsung has a little bit of hope that there is to breathe new life into its share,” said Park Sung-soon, an analyst at Cape Investment & Securities.
Samsung, the world’s top smartphone maker, said that it had to make the difficult decision in an effort to increase efficiency. It added it would, however, continue to be sales in China
“Production equipment will have to be re-assigned to different global production sites, depending on which of our global production strategy, which is based on the needs of the market,” he said in a statement, without elaborating.
Samsung declined to give it to the Huizhou plant will have the capacity or the numbers of the staff members. The factory was built in 1992, according to the company.
South Korean media said, in the service of the 6000 workers, and produced 63 million units in 2017.
For three years, Samsung produced 394 million of the devices worldwide, according to its annual report.
The company has developed a smartphone-a production in cheaper countries, such as India and Vietnam, among others, in the last couple of years.
Reporting by Ju-min Park; Editing by Clarence Fernandez and David Evans