Samsung is shutting down its mobile phone factory in China

China being the world’s largest smartphone market, explains why many smartphone companies are camping there with mobile production plants. However, that does not mean the market is ready and yet to be explored.

There are many smartphone companies sprouting from China. So the competition is growing stiff day by day and today, Samsung has officially announced that it has stopped its mobile phone production in the country.

Samsung had only one remaining factory in China after it suspended one plant last year, followed by downscaling production at the last production plant in June this year.

According to reports, the company reached that decision as a result of the escalating competition from domestic rivals.

But that does not explain it all. Some companies have recently shifted from producing their goods in China due to the economic recession and rising costs of labor. However, Samsung knew this was coming since the company has expanded its smartphone production in countries with low-costs in recent years.

So far, Google has shifted significant portions of its US-bound motherboards to Malaysia and Taiwan. Quanta Computer, Foxconn Technology, and Inventec have also moved part of their production to other countries.

Sony also stated they would be shifting their smartphone production by closing down its Beijing company to solely make their smartphones in Taiwan.

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Alvin Wanjala

Alvin Wanjala has been writing about technology for over 2 years. He writes about different topics in the consumer tech space. He loves streaming music, programming, and gaming during downtimes.

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