Due to Fierce Competition, Samsung's Last Mobile Phone Factory in China Finally Closes
One by one, Samsung’s mobile phone factories in China began to go bankrupt. Finally, the only remaining Samsung mobile phone factory in Huizhou, Guangdong, was also forced to go out of business.
The latter factory follows the fate of the Samsung factory in Tianjin which went bankrupt first. As reported, the South Korean vendor was unable to compete with local Chinese competitors regarding labor costs. Then related to the economy in China which is currently sluggish.
Local media from South Korea said that the Samsung factory in Huizho had 6,000 workers who made around 63 million units of mobile phones in 2022. You could say that its contribution was very significant to the 394 million units of Samsung smartphones made that year.
Samsung Factory in China Closes
It turns out that not only the Samsung manufacturer, there are several other vendors who have also moved their cellphone factories from China, as Dafunda Tekno quoted from Reuters.
One of them is Sony, which also closed its factory in Beijing and wants to focus on factories in Thailand. Then there is another foreign vendor, Apple, which is estimated to still maintain its factory in the Panda Country.
“In China they prefer cheap cellphones from local brands, while for high-end they will choose Apple and Huawei,” said Park Sung-soon, an analyst at Cape Investment & Securities.
Samsung Can’t Compete With Local Competitors
Before going out of business, the last Samsung mobile phone factory in Huizhou was already on the verge of sinking in China, because of the fierce competition there.
The mobile phone market share in China did not even reach one percent in the second quarter of 2022, according to research firm Strategy Analytics.
The research firm reports if smartphone market share Samsung in China in the second quarter of 2022 was only 0.7 percent where sales volume was 700,000 units smartphone.
Whereas in China is one of the largest smartphone market in the world, according to some market analysis. Even though they no longer produce cellphones in China, Samsung still sells their products there.