Samsung took a radical decision after a period in which he tried to solve his problems, so he stopped the production of mobile phones at one of the factories that he still has assets at the moment. In accordance with an announcement made some time ago, the people from Samsung stopped the production of phones in the factory in Huizhou, China, it substantially reduced production there just a few months ago.
Samsung had two factories in China, and now it doesn't have any, and that's because the local manufacturers have become much stronger, stealing most of the sales it had there. In 2013, Samsung had a 15% market share in China, but in 2019 it reached only 1% due to local competition, so the Korean phone factories were closed to reduce the company's losses.
Samsung takes a RADICAL DECISION, it has STOPPED Phone Production
Samsung will relocate its equipment used to manufacture mobile phones, having at least one factory in Vietnam, so it will have a place to use them to manufacture its products. Samsung's sales remain at a high level, with the Koreans continuing to sell tens of millions of phones every fiscal quarter, and remaining at the top of the smartphone market, despite competition from Apple and Huawei.
Samsung Electronics has ended mobile phone production in China, it said on Wednesday (October 2nd), hurt by intensifying competition from domestic rivals in the world's biggest smartphone market. The shutdown of Samsung's last phone factory in China comes Monday after it halted production at its plant in the southern city of Huizhou in June and suspended another plant late last year."
Samsung has had serious problems in recent years due to the oversaturation of the smartphone market, the company's profit dropping significantly, but this did nothing but convince it to be even more competitive. Those from Samsung continue to innovate in the field of mobile phones, they continue to be the main suppliers of components for other phone manufacturers, which helps them to stay in business and generate more profit.
Samsung has no plans to close any more factories, at least for now, and the chances of that happening are small, considering that phone sales remain at a high level.
