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Samsung Closes Last China Factory as Competition Rises, Sales Suffer

Anthony Russo 2019-10-05 08:25 AM

Samsung Electronics Co. Ltd. is closing its last factory in China amid aggressive competition, low sales in the country and a general slowdown in the economy. 

Despite maintaining status as the world's largest smartphone maker, Samsung's market share in China was a stagnant 1% in the period from the first quarter of 2018 to the first trimester of this year, according to a report by Hong Kong-based global industry platform Counterpoint.

Instead, the Chinese smartphone market has been dominated by Huawei Technologies Co. Ltd., Vivo Communication Technology Co. Ltd. and OPPO Mobile Telecommunications Corp., which controlled 74% of the market as of the second quarter, the report stated. And Samsung was not even the next one up.

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(Source: Counterpoint)

Meanwhile, Huawei, the top smartphone manufacturer in China, enjoyed strong growth in the second quarter. It shipped 37.3 million devices during the period, up 31% year-over-year, as reported by Canalys. At 36%, it marked the highest market share held by any mobile phone vendor in eight years, Canalys said.

Operations in Huizhou, Samsung’s last Chinese smartphone factory, ended last month, the South Morning China Post reported.