Samsung cuts Chinese device production – again - Mobile World Live

Samsung cuts Chinese device production – again

05 JUN 2019

Samsung prepared to cut production at a smartphone plant in China, only months after closing another facility in the country, Reuters reported.

The reductions at its facility in Huizhou come around six months after it shut its plant in Tianjin.

Samsung’s smartphone volumes have come under pressure from tough competition in the Chinese market, largely at the hands of fast-moving local players including Huawei, Xiaomi, Oppo and Vivo.

Reuters also noted a bout of anti-South Korean sentiment following a diplomatic spat, accompanied by growing support for Chinese players in the face of a trade dispute with the US.

While the news agency cited Counterpoint Research figures showing Samsung’s Chinese volumes have recently stabilised, the vendor clearly still feels the need to rebalance resources and demand.

It is not clear if any devices manufactured at the Huizhou plant are shipped outside of China, but Samsung also manufactures devices in Vietnam for the global market.

The vendor apparently offered voluntary redundancy to workers in Huizhou, although it has not stated how many staff will be impacted.

In the global market, Samsung could see a boost should Huawei’s US-related woes continue, as it is the vendor best place in terms of scale, reach and brand to fill any gaps.

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