Samsung no longer produces mobile phones in China
The Koreans are discontinuing the production of smartphones in China. The reasons are strong Chinese competition and rising labour costs.
Samsung is discontinuing the production of smartphones in China due to declining market shares. The reason for the loss of market share is the domestic competition - i.e. Huawei, Vivo, Oppo and Xiaomi. According to a report by news agency Reuters, their shares have plummeted from 15 per cent in 2013 to just 1 per cent in the current financial year.
The withdrawal from China began last year. Operations were slowly discontinued in some plants and finally closed down completely. According to Samsung, the production equipment will be transferred to other locations.
Expansion in lower-cost countries
Rising labour costs in China are probably another reason for the change: the South Korean company is now manufacturing its devices in cheaper countries such as India and Vietnam.
This is intended to increase efficiency. However, the sale of smartphones in China will continue. According to Samsung's annual report, 394 million smartphones were manufactured worldwide this year.
Testing devices and gadgets is my thing. Some experiments lead to interesting insights, others to demolished phones. I’m hooked on series and can’t imagine life without Netflix. In summer, you’ll find me soaking up the sun by the lake or at a music festival.
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