Samsung Abandons It’s Last Manufacturing Plant In China Amidst Poor Sales

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Samsung may have given up on the Chinese market eventually, considering that its sales have rather continue to plummet amidst strong competition with local phone manufacturers, Huawei, OPPO, Vivo, and Xiaomi

Unlike most countries of the world where Samsung has remained a tough competitor mobility-wise, it is a different scenario in China where the mobile giant seems to have lost control over the market for a good number of years now. Currently, the South Korea-based phone maker has reportedly shut its last manufacturing plant in the city of Huizhou, China. The closure, however, comes a year after it did the same to its Tianjin plant which makes up for the last duo in the country.

Samsung has also had its better years, and as a matter of fact, in 2013, the phone maker maintained the lead position with an approximate share of 19% in the mobility market, however, on the contrary, the same company couldn’t grab even 1% of China’s mobility share for the year ending 2018.

The reason for the continuous sales plummet was considered to be a result of the increasing competition among the local manufacturers- Huawei, OPPO, Vivo, and Xiaomi. Also, given that Samsung has failed to appreciate the difference in trends in Chinese versus Western markets, with a sharp polarization occurring between premium and budget handsets, it is only justifiable that such occurrence will take place.

For a moment, China’s failure in China may be understandable, however, if proper metrics are not put in place to address the respective issues, it is only a matter of time before such occurrence is being mirrored in other markets, with India being the closest on the list. The highly-populated market is also experiencing a turn around with respect to the increase in the numbers of local manufacturers which are now offering a better alternative for bigger brands or high-end product manufacturers like Samsung and iPhone.

According to Techspot, Samsung continues to manufacture a large portion of its budget and mid-range handsets in India to sell to local and overseas markets, while many of their premium devices are manufactured in Vietnam.

 

That been said, Samsung, despite struggling in the world’s two largest markets continues to be the largest handset manufacturer globally, with 20.8% sales volume. However, that’s down from 21.7% last year, and their overall shipments fell by 8% in volume last year. While this outstanding performance is credible, it is all thanks to Huawei’s political turmoil and Apple’s awkward pricing with the iPhone X and XS series- considering that the two have remained its closest competitor so far.

 

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