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Samsung to stop making phones in China following increased competition

Paul Lipscombe
October 2, 2019

Sony has also recently relocated production in recent times

Samsung has decided to stop producing smartphones in China following increased competition in the country and a big drop in market share.

According to Reuters Samsung has decided to shut its last factory in the country, after it shut its Huizhou factory in June earlier this year.

The decision has likely been influenced by the significant plummet in market share Samsung has endured in the region, with the number falling to just one per cent in the first quarter of this year according to Counterpoint Research.

Samsung’s market share has been taken by a host of home-grown vendors such as Huawei, Xiaomi and Oppo.

Higher labour costs in China have led to other smartphone brands such as Sony closing its Beijing plant also.

In a statement the South Korean vendor said: “The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs.”

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