Due to an increasingly competitive landscape in China, especially from Domestic counterparts, Reuters report that South Korean conglomerate Samsung has decided to pull its mobile phone manufacturing out of China.
The move is in line with Samsung’s slow exit from the Chinese market, where it has closed several other factories over the last year, while slowly scaling back at its last remaining smartphone plan. As reported by TechCrunch Samsung has had significant issues maintaining market share in China, at around 1%, and have largely been driven out of the market by local competitors such as Huawei. This stands in stark contrast to the ~15% market share Samsung had in 2013.
Samsung is by no means the only Western brand that has had issues penetrating the Chinese market where domestic players reign supreme. While Apple seem to continue their production in China for now, except the new Apple Pro, they have experienced similar issues to Samsung, and have not had any significant luck in gaining a substantial foothold.
According to TechCrunch Samsung has recently started to investigate manufacturing options in other countries in the South East Asian region, such as Vietnam, where production costs can be substantially lower.