Samsung Electronics Co Ltd will suspend operations at one of the two manufacturing plants in China. The reason behind the closedown is Samsung’s stumping sales and also because of slowing down growth in the smartphone market especially in China where several Chinese manufacturing companies have mushroomed to compete with bigwigs such as Apple and Samsung.
Samsung has been maintaining its first position in terms of units shipped for years while interchanging positions with Apple which was at the second position, however, Chinese brand Huawei recently outran Apple becoming the world’s second smartphone manufacturing company. Talking about Samsung in China, the tech giant stated on Monday that it might suspend operations at its manufacturing plant in Tianjin, China. An official statement says “The overall smartphone market is having difficulties due to slowing growth. Samsung Electronics’ Tianjin telecom enterprise aims to focus on activities that increase competitiveness and efficiency”.
Samsung had a market share of 20 percent in China over five years ago which has drastically reduced to a negligible 1 percent due to the presence of Chinese brands such as Xiaomi, Huawei, etc that have smartphones with high-end specifications with a cheaper and affordable price tag.
Samsung has invested heavily in establishing manufacturing plants in Vietnam and India where the former is responsible for the production of 240 million units a year. Samsung recently opened the world’s biggest smartphone production facility at Noida, New Delhi in India which is expected to become an export hub due to its projected production rates. In China, Samsung’ Tianjin plant produces around 36 million units while its another plant in Huizhou produces over 72 million units a year.
Similar to how Samsung has decided to suspend its operation in one of the factories in China, HTC recently closed all its operations in India and has reverted to online sales of some of its products such as HTC Vive, etc, although it has stated that HTC will return once it has profitably managed its assets and established a stronger foothold in the smartphone market. The reason being reduced sales and increasing competition from feature-packed smartphones at cheaper rates from Chinese manufacturers.
On the contrary, after outrunning Apple in terms of total units shipped, top executives at Huawei have projected a hyped estimation claiming to outrun Samsung’s total project unit shipment in 2018 at 350 million units, in less than two years from now. Read along and stay informed at True-Tech.
