Samsung may stop producing smartphones at its China plant

Samsung may suspend operations at China mobile phone factory: Electronic Times

Samsung may suspend operations at China mobile phone factory: Electronic Times

The Tianjin factory is one of two in China.

South Korean electronics giant may shut down its production at a mobile factory in China, according to media reports.

In last few years, Chinese smartphone makers have emerged as the leaders in smartphone markets across the world, which could be a reason for Samsung to consider the step of suspending operations at its Chinese mobile production factory.

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The Tianjin plant, established in 2001, used to play a key role as Samsung's global production hub with sales exceeding 15 trillion won (US$13.20 billion) in 2013.

In China the phonemaker has faced particular hardships, watching its market share in the country fall to less than one per cent this year as local brands such as Huawei and Xiaomi continue to outperform. From 20% five years ago, it is less than 1% today. This is because people apparently prefer the local competitors' cheaper feature-packed models. Its other plant, located in the central city of Huizhou, produces 72 million units each year. It does not appear that this plant will be closed with that in Tianjin. In comparison, Vietnam is responsible for almost 240 million units. India is the second largest smartphone market in the world after China, and Samsung is keen to secure a high position in the market, as well as export Indian-made devices overseas. "Samsung Electronics' Tianjin telecom enterprise aims to focus on activities that increase competitiveness and efficiency", it said in a statement to Reuters. While Samsung is mulling the decision over, it did say that nothing concrete has been decided yet.

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