26 August 2019
Samsung is reportedly shutting down its smartphone manufacturing plant in China following the intensifying competition from homegrown companies like Huawei and Xiaomi. This is the last manufacturing plant in China that Samsung is shutting down.
Samsung is the world’s leading manufacturer of smartphones but off late the sales of its offerings have lowered down and left to only 1% market share. The main reason behind the dwindling of sales is the growth of homegrown players. Chinese users purchase smartphones from local manufacturers if they want something affordable and in case of premium flagships, they buy either from Apple of Huawei, so the position of Samsung in the country eventually diminished. The South Korean company once captured 15% of China’s smartphone market is now almost nowhere to be seen.
Samsung will continue to manufacture smartphones in its factories located in other countries including Vietnam and India. It’s assumed that the closing down of its last plant located in Haizhou won’t impact the future ODM phones with Samsung badge on them. For instance, Samsung’s first two ODM devices – the Galaxy A6s and Galaxy A10s haven’t been assembled in Samsung’s facilities.
At this point, it doesn’t look like Samsung will make a return to manufacturing phones in China. It’s safe to assume Samsung will strengthen its focus in other countries even further.