Samsung Shuts Down Final Smartphone Factory in China
Samsung closes its last remaining phone manufacturing plant in Huizhou, China, as the company struggles to maintain market share against local rivals and Apple. The tech giant will continue selling devices in the country, but all production shifts to other locations worldwide.
Samsung officially closes its last smartphone factory in Huizhou, China, as part of an effort to improve overall efficiency. The company no longer builds any of its devices in the country, though it continues to sell phones to Chinese consumers from manufacturing hubs located elsewhere in the world.
The tech giant holds a mere one percent of the Chinese smartphone market according to Counterpoint Research, as local brands dominate the budget segment while Apple and Huawei capture high-end buyers. Samsung finds itself squeezed out of the middle tier, making its mid-range Galaxy A-series largely ineffective at boosting local sales.
Rising labor costs and an ongoing economic slowdown further diminish the appeal of manufacturing in China for Samsung. The company already suspends one factory in late 2018 and slashes production at the Huizhou plant prior to this complete closure, signaling that current market conditions make a local manufacturing comeback highly unlikely.