Samsung has been losing ground in China for quite some time under the pressure of local brands such as Huawei and Xiaomi. We can say that this is one of the signs of a lost market for the Korean company, which has just closed its last smartphone factory in this country.
Analyst from Cape Investment & Securities Pak Sung-Shun reports:
The Korean company last June reduced production at the Huizhou plant. The decline in demand for Samsung smartphones is not the only reason the corporation decided to close its latest mobile device manufacturing plant in China.
This decision was also influenced by rising labor costs and a slowdown in economic growth. All over the world over the past few years, there has been a decline in sales of smartphones of all brands. Since the closure of the last factory in China, Samsung has relocated all production to more affordable countries such as India and Vietnam.
Samsung is not the only company that refuses to manufacture in China. Sony also said it plans to close its Beijing factory in the near future, and the production line will be relocated to Thailand. In August this year, it became known that Google is moving the production of Pixel smartphones outside of China to Vietnam, explaining this by rising labor costs and higher tariffs.