According to network sources, the last factory of the South Korean company Samsung, located in China and engaged in the production of smartphones, will be closed at the end of this month. Such a message appeared in the Korean media, to which the source refers.
The Samsung factory in Guangdong was launched in late 1992. This summer, Samsung reduced its production capacity and carried out a staff reduction, signaling what could happen if the company’s share of the Chinese smartphone market does not increase. The smartphones of the South Korean technology giant are not very popular in China, and Samsung’s share in the local market is about 1%. The company was never able to influence the Chinese smartphone market. However, it cannot be ruled out that in the future Samsung will have reasons to resume production in this country.
Samsung will continue to manufacture smartphones in factories located in other countries, including Vietnam and India. In addition, Samsung has resorted to third-party services, which, under license, assemble smartphones from a South Korean company in their factories. The first such devices were the Galaxy A6s and Galaxy A10s smartphones, which were not assembled at Samsung factories. Most likely, the closure of the last plant in China will not affect the volume of shipments of devices under the Samsung brand from third-party companies. According to some estimates, by the end of 2019, the company can ship up to 40 million smartphones manufactured under the Samsung license by other companies in China.