Samsung stops making mobile in China, expands India |
Samsung Electronics Co Ltd has announced on Wednesday that it is ending its mobile telephone production in China. The shutdown of Samsung`s latest China phone factory comes after it cut production at the plant in Huizhou in June and suspended another factory late last year, underscoring stiff competition in the country. The South Korean tech giant`s ceased phone production in China follows other manufacturers shifting production from China due to rising labour costs and the economic slowdown. Sony also said it was closing its Beijing smartphone plant and would only make smartphones in Thailand.But Apple still makes major products in China. Samsung`s share of the Chinese market shrank to 1% in the first quarter from around 15% in mid-2013, as it lost out to fast-growing homegrown brands such as Huawei Technologies and Xiaomi Corp. Samsung, the world`s top smartphone maker, said it had taken the difficult decision in a bid to boost efficiency. It added it would however continue sales in China. The company has been expanding smartphone production in lower-cost countries, such as India and Vietnam, in recent years.
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