Samsung, despite the very good start of the year thanks to the Samsung GALAXY S10 series of phones, was forced to reduce the production of phones and lay off people, which shows that things are not going so well. Everything happened in the last Samsung factory that still produces smartphones in China, sales in the country falling to only 1% of the annual total, that is, somewhere around 3-4 million units, insufficient to support a factory.
Samsung decided to reduce production and lay off people at the factory in Huizhou, China, but no clear data is known yet, although the simple actions of the Koreans confirm that the situation is very delicate. Although phones were produced there not only for China, it seems that the sales in all the areas where Samsung sold these phones no longer justify maintaining the production at the same level, nor the employees.
Samsung REDUCES Phone Production, Lays Off People
Samsung he didn't reveal very clearly what is happening there, and how much the sales would have decreased since he decided to reduce the production of phones and even lay people off, but his phone sales have been declining for some time. Even if now there is no danger of Huawei falling behind Samsung in phone sales, this does not mean that we will see good results from the Koreans in terms of sales.
South Korea said on Wednesday it plans to cut production at a smartphone plant in China. The output reduction at the factory in the southern city of Huizhou comes just six months after Samsung said it would close its only other handset plant in China.
Samsung it allows the employees to ask for compensatory wages for a resignation by June 14th, after which it will decide on its own who will be fired, and how much money they will receive for this. In recent years, those from Samsung have focused more on factories in India and Vietnam than on those in China, closing everything they could, less the one where it has decided to reduce production now.
Samsung is the largest smartphone manufacturer at the moment, but considering the way things are going, it is not guaranteed that it can keep its sales at the same level for a long time.