Samsung closes its last smartphone factory in China

Samsung has closed its final manufacturing unit in China – manufacturing on the facility in Huizhou was slashed a number of months in the past and has now Reuters reviews that the manufacturing unit has been utterly shut down.

In 2017 the Huizhou manufacturing unit made 64 million telephones, a big fraction of Samsung’s international output of 394 million. In 2011, this manufacturing unit made 70 million telephones whereas the one in Tianjin produced 56 million (the Tianjin facility was closed late final yr).

This doesn’t imply that Samsung is pulling out of China, it’ll proceed promoting telephones there. Nonetheless, the stiff competitors from native manufacturers implies that it’s now not economically viable to make its telephones there.

Its market share has shrunk to 1% as Chinese language shoppers flip to native manufacturers for inexpensive units and to Huawei and Apple for premium fashions, in response to Park Sung-soon, an analyst at Cape Funding & Securities.

 He Huifeng)
Samsung’s manufacturing unit in Huizhou (picture: He Huifeng)

The manufacturing gear from the manufacturing unit shall be moved to different services all over the world. The corporate has been increasing its manufacturing capability in nations like India and Vietnam because of the decrease price of producing there.

Samsung’s Chinese language gross sales could also be made up of ODM units sooner or later – the Galaxy A6s was its first ODM telephone, adopted up by the Galaxy A10s. ODM implies that the telephones are manufactured by non-Samsung factories beneath license. The A10s, for instance, is made by Jianxing Yongrui Electron Know-how. Beforehand, Samsung introduced plans to ship 40 million ODM telephones.

It’s not simply Samsung both, Sony closed down its Beijing smartphone plant earlier this yr.

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