Samsung Cutting Its Phone Production in China
"Samsung is planning to cut smartphone production in its last remaining factory in Huizhou, China. The company is taking steps to lay off workers. This move followed the closure of the two factories in Shenzhen and Tianjin over the past year due to poor performance and rising labor costs in China. Samsung has been producing 63 million smartphones per year in the Huizhou plant. Instead of China, Samsung will likely increase investment and production capacities in India and Vietnam, both producing 67% of its global smartphones output. Samsung has been losing market share in the China market since 2013, whereas local phone makers have been gaining ground by aggressively launching high spec devices at low-to-medium pricing. This is due to Samsung’s marketing strategies that heavily focus on the high-end S series. We expect that Samsung will adjust its marketing strategies towards low-to-mid end model lines, based on cost cutting and moving of factories." - Angela Cheon
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Jun 11, 2019
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