+1-888-308-5802     
News Contact Us

Samsung considers halting smartphone facility operations in China

Author : Shikha Sinha | Published Date : 2018-08-13 

Samsung Electronics Co Ltd, the leading manufacturer and distributer of electronic products has reportedly made plans to suspend its operations at its mobile phone manufacturing plants in China. As per sources, the decision may have come on the heels of the company’s rising labor cost and slumping sales.

An official statement claims that Samsung, in all probability, may stop its smartphone production operations at the Tianjin Samsung Telecom Technology located in the northern Chinese city of Tianjin, South Korea this year.

Reportedly the company claimed in a statement to the CNBC, that the overall global smartphone market is currently struggling due to a slow growth in smartphone sales. However, with regards to the Tianjin plant, the South Korean smartphone maker stated that the fate of its Tianjin operation has not yet been decided.

As per reports, Samsung had a 20% share in the China market merely half a decade earlier, which fell by nearly one percent this year, plausibly due to the arrival of new players like Xiaomi, Huawei and other Chinese brands.

Apparently, Samsung Electronics Co Ltd is under pressure to kickstart its smartphone sales after encountering its slowest quarterly profit growth on account of rival players that are attracting customers with smartphones deemed to be cheaper and loaded with features similar to premium smartphones.

For the record, Samsung has invested a huge chuck of capital in its Vietnam and Indian production facilities. Sources cite that the company has recently opened the world’s biggest smartphone factory situated outside New Delhi, which aims to become a major export hub.

According to reliable reports, Samsung’s Tianjin plant produces 36 million smartphones a year, whereas the company’s second phone manufacturing plant in Huizhou manufactures 72 million units a year. The company’s two plants in located in Vietnam, combinedly account for about 240 million units annually.

About Author

Shikha Sinha

Shikha Sinha

Shikha Sinha currently pens down content for fractovia.org, a news platform which provides the latest business highlights and industry trends. Shikha also is a contributor on various other online media websites where she writes informative, research-oriented content spanning the retail, healthcare, F&B, and technology sectors. As her first stint in writing, Shikha was an active contributor on Yahoo Voices where she penned down creative and imaginative pieces. She holds a Bachelor of Technology degree in Electrical and Electronics Engineering. She can be contacted at- [email protected] | https://twitter.com/shikhas999

Related News

Clio raises $250 million in a Series D funding by TCV and JMI Equity

Published Date: 2019-09-06         Author: Shikha Sinha

The cloud-based legal technology startup hits a historic mark in future of legal industry with this investment. Clio, a leading legal software company has recently announced that it has bagged US$250 million in Series D funding from American equity firms JMI Equity and TCV. According to sour... Read More

Co-working firm Spacious the latest in WeWork’s acquisition spree

Published Date: 2019-08-29         Author: Shikha Sinha

New York-based co-working business, The We Company, formerly known as WeWork, has today announced its acquisition of rival start-up Spacious. The company, formed three years ago, is focused on converting restaurants closed during the day into efficient spaces for co-working. WeWork is a part of many... Read More

SoftBank in talks to invest $150M in Dailyhunt and $400M in Lenskart

Published Date: 2019-08-27         Author: Shikha Sinha

SoftBank is expected to lead a $250 million round with private equity major Carlyle for Dailyhunt   South American conglomerate Synergy Group also hopes to invest in India’s Jet Airways. SoftBank Group Corp., a Japanese multinational conglomerate, is reportedly in talks to clo... Read More

© 2020 Fractovia. All Rights Reserved