Samsung to Shut Mobile Phone Plant in China’s Tianjin

Samsung to Shut Mobile Phone Plant in China’s Tianjin

Samsung to Shut Mobile Phone Plant in China’s Tianjin

Comments Off on Samsung to Shut Mobile Phone Plant in China’s Tianjin

Samsung to Shut Mobile Phone Plant in China's Tianjin

Samsung Electronics will cease operations at one of its mobile phone manufacturing plants in China, the company said, as its sales in the world’s biggest smartphone market slumps amid rising competition from lower-cost local rivals.

The South Korean company has seen its share of the Chinese market shrink to 1 percent in the first quarter of this year, losing out to home-grown brands like Huawei, according to market research firm Counterpoint, which pegs Samsung’s share of the pie at about 15 percent at mid-2013.

“As part of ongoing efforts to enhance efficiency in our production facilities, Samsung Electronics has arrived at the difficult decision to cease operations of Tianjin Samsung Electronics Telecommunication,” Samsung said in a statement, referring to the plant in northern Chinese city of Tianjin.

The factory, which currently employs about 2,600 people, is scheduled to be shut down by the end of this year.

Samsung, the world’s biggest smartphone maker, said it would offer compensation packages to the employees and also provide opportunities to transfer to other Samsung facilities.

The company, which has been focusing on low-cost countries like Vietnam and India for production, added it would continue to operate another Chinese phone factory in Huizhou, in the southern province of Guangdong.

“Samsung doesn’t need to stay in China because of rising labour cost and its almost non-existent Chinese market share. They can be better off in India and Vietnam,” said Greg Roh, a senior analyst at Hyundai Motor Securities.

Samsung’s Tianjin plant produces 36 million mobile phones a year and the Huizhou plant makes 72 million units, while two of Samsung’s factories in Vietnam combined make 240 million units a year, according to the South Korean newspaper Electronic Times.

Samsung declined to disclose the capacity of each factory.

“China remains an important market for Samsung and we are actively participating in China’s economic policies by fostering growth in the components industry,” Samsung said.

admin

Related Posts

Samsung Galaxy Note 9 AI Camera Features Leaked, S Pen to Come in Colour Options

Comments Off on Samsung Galaxy Note 9 AI Camera Features Leaked, S Pen to Come in Colour Options

Samsung’s Foldable Phone Codenamed ‘Winner’ Said to Sport a 7.3-Inch OLED Display

Comments Off on Samsung’s Foldable Phone Codenamed ‘Winner’ Said to Sport a 7.3-Inch OLED Display

Samsung Galaxy P30 Storage Models, Colour Options Leaked

Comments Off on Samsung Galaxy P30 Storage Models, Colour Options Leaked

Samsung Galaxy A7 (2018) Gets Super Slow Motion Video Recording, Galaxy A6+ Adds AR Emoji via Software Update

Comments Off on Samsung Galaxy A7 (2018) Gets Super Slow Motion Video Recording, Galaxy A6+ Adds AR Emoji via Software Update

Samsung Galaxy S10, Galaxy S10+ Dimensions Surface, Patent Showing Holographic Tech Spotted

Comments Off on Samsung Galaxy S10, Galaxy S10+ Dimensions Surface, Patent Showing Holographic Tech Spotted

Samsung Galaxy J6 aka Galaxy On6 Receiving Auto Brightness Feature, Dual VoLTE Support via OTA Update

Comments Off on Samsung Galaxy J6 aka Galaxy On6 Receiving Auto Brightness Feature, Dual VoLTE Support via OTA Update

Samsung’s First Android Go Smartphone Now Revealed Through Official User Manual

Comments Off on Samsung’s First Android Go Smartphone Now Revealed Through Official User Manual

Samsung Galaxy A8s Price Revealed as It Goes Up for Pre-Orders

Comments Off on Samsung Galaxy A8s Price Revealed as It Goes Up for Pre-Orders

Samsung’s Foldable Phone Prototype Reportedly Showcased at CES 2019

Comments Off on Samsung’s Foldable Phone Prototype Reportedly Showcased at CES 2019

Samsung Electronics Buys AI Tech Firm Zhilabs to Boost 5G Capabilities

Comments Off on Samsung Electronics Buys AI Tech Firm Zhilabs to Boost 5G Capabilities

Samsung Galaxy A9 (2018) With Quad Rear Camera Setup, Infinity Display Launched in India: Price, Specifications

Comments Off on Samsung Galaxy A9 (2018) With Quad Rear Camera Setup, Infinity Display Launched in India: Price, Specifications

Samsung Said to Reveal Some Features of Foldable Phone This Week

Comments Off on Samsung Said to Reveal Some Features of Foldable Phone This Week

Create Account



Log In Your Account