Samsung closes last smartphone factory in China

Samsung closes last smartphone factory in China

On October 2, 2019, it became known that Samsung decided to close the last smartphone factory in China. Among the main reasons is called domestic competition and increasing overall profitability and efficiency.

According to media reports, in 2013, Samsung occupied the fifth part of the mobile phone market in China. Currently, this figure has dropped to 1%. The company employed about 6,000 employees. In 2017, 63 million mobile teflons were produced. According to official representatives of Samsung, all equipment will be redirected to other markets.

According to sources, the closure of the Huizhou factory is associated not only with an attempt by the Korean company to improve business efficiency, but also with fears amid a trade war between China and the United States. In addition, the slowdown in the local economy, the global drop in demand for smartphones and the increase in costs to workers in Chinese factories play their role. Earlier, a similar Samsung company in Tianjin was closed.

Samsung closes last smartphone factory in China

A similar strategy is followed by Sony, which announced the closure of the Beijing factory and the transfer of assembly lines to Thailand. Attempts to diversify production are made by Apple. In accordance with the new global strategy, the management of the American company plans to move the plants to India, Indonesia, Malaysia and Mexico within a few years.

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