Samsung is considering stopping work one of its smartphone factories in China, due to the state of the market, reports have claimed.
According to Reuters, the South Korean tech giant, which recently revealed details of a major technology investment push, is considering its move due to the state of the market, being quite saturated, and with smaller rivals offering cheaper phones filled with various features.
However, the move out of the Tianjin Samsung Telecom Technology facility, located in Tianjin in the northern part of China, is still to be confirmed.
“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,” Samsung said in a statement to Reuters.
Samsung used to have a 20 per cent market share in China, but it seems as this number has dwindled recently, with Reuters noting that the company is having similar thoughts with another plant in Huizhou as well.
In recent times, Samsung seems to have been moving away from China, and into territories such as Vietnam, or India. Its smartphone factory, and the world's biggest one, is located just outside New Delhi, India.
It seems as this Tianjin plant has been producing 36 million mobile phones a year. In comparison, the two Vietnamese companies combined make 240 million devices a year. The Huizhou plant makes 72 million devices a year.
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