Tuesday, 25 September 2018

Samsung considers Chinese factory closure, amid falling sales

By Chris Kelly, Total Telecom
Monday 13 August 18

Samsung is the biggest producer of smartphone handsets in the world

Electronics giant Samsung is considering suspending production at one of its biggest production facilities in China, according to a report by Reuters. The report cites falling sales and increasing labour costs for the decision…

Electronics giant Samsung is considering suspending production at one of its biggest production facilities in China, according to a report by Reuters.

The report cites falling sales and increasing labour costs for the decision.

“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,” the company said in a statement to the press.

Last year Samsung produced a total of 317 million smartphones, around 36 million of which were produced at the Tianjin facility in China.

Samsung is facing strong competition from its regional rival, Huawei, who has recently overtaken Apple as the world's second biggest producers of smartphones. Huawei remains on course to produce in excess of 200 million smartphones this year, in part due to the success of its recently launched P20 Pro flagship brand.

At present, Samsung enjoys a 21.6 per cent market share of the global smart phone market. With Huawei looking to dramatically increase its handset output this year, Samsung could well see that market share eroded by at least a couple of percentage points. 

 

Also in the news:

Samsung invests $22 billion in AI and 5G

US gets a new mobile operator

MTS says 5G 'nearly ready' after St Petersburg demo

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry