The company Samsung Electronics announced about closing production of smartphones in China due to rising labor costs and the economically slowdown”.
It wrote that “It was difficult decision to stop operations of Samsung Electronics in china but we decided to continue sales of products in China.
Samsung’s market share in China has decreased too much as competitors like Huawei and Xiaomi got the upper hand.
An analyst at Cape Investment & Securities Park Sung-soon said “People buy low priced smartphones from domestic brands and high-end phones from Apple or Huawei in China, Samsung has little hope there to recover its share soon”.
Samsung shut down its production at the plant located in the southern city of Huizhou in June and suspended another factory in north eastern China’s Tianjin late last year due to tough competition in the country.
The company has moved a large share of its smartphone production to Vietnam.
Samsung is the South Korean based tech giant company, which is world’s biggest manufacturer of semiconductors, smartphones and display screens.
The company is weathering a spell of slack demand for computer chips. Like other electronics makers, it also is facing the impact of tightened Japanese controls on exports of high tech materials used in semiconductors and displays.