Samsung shuts down its production of smartphones in China

The world’s leading manufacturer of smartphones, has closed sti last plant based on the world’s largest market for smartphones. In other words, Samsung has announced the discontinuation of its production to China, as reported by Reuters.

Samsung fold bag in China. Image Samsung.

There had been warning signs with the closure of a plant at the end of 2018 and a brake on production in the last remaining in June.

Three factors explain this decision. In the first place, the market share of the brand Korean has melted like snow in the sun in the country, for the benefit of the local brands. Of 15 % in 2013, it dropped to 1 % this year, according to Counterpoint.

Secondly, the cost of labor has increased in China. Finally, the economic war, which takes place with the United States is likely to increase the price of products on the territory of the united states.

Although the production stopped in the Middle kingdom, Samsung will continue to sell sti phones. But the Korean group focuses well on other asian markets more profitable for him.

According to Canalys, 60% of its production now comes from Vietnam. Samsung is also investing a lot in India, where it opened last year “the biggest phone factory in the world ” from which will grow to 120 million units per year from 2020. He will need that to contain the chinese manufacturers who are in the process of him attaching themselves to the customers on this market.