Samsung Electronics has stopped mobile phone production in China, citing intense competition from cheaper local brands such as Huawei Technologies and Xiaomi.
According to market research firm Counterpoint, Samsung’s share of the Chinese market shrank to 1% in the first quarter, from around 15% in mid-2013.
As a result of this, Samsung has opted to relocate its smartphone production to Vietnam, India and other lower-cost countries.
“The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs,” the company said in a statement.
Samsung Electronics, however, will continue sales in China.
See Also:
