South Korean electronics giant may shut down its production at a mobile factory in China, according to media reports. For quite some time now, fewer sales and increase in labour costs have propelled the Samsung to consider this step. The Samsung’s mobile manufacturing factory is located in the Chinese city of Tianjin. However, the company has made it clear that final decision will be taken after deliberations on its future. In last few years, Chinese smartphone makers have emerged as the leaders in smartphone markets across the world, which could be a reason for Samsung to consider the step of suspending operations at its Chinese mobile production factory.

In its official statement to Reuters, Samsung Electronics said that the overall smartphone market is having difficulties due to slowing growth. Samsung is trying hard to increase its efficiency and c0mpetitiveness by introducing some new activities at the factory. Several Chinese brands, including Huawei, Xiaomi and other local brands, have outclassed the Samsung in the local market, particularly through the introduction of competitive prices of their smartphones.

Samsung had a 20% share of the Chinese market which came down to less than 1%. At present, Samsung has two mobile manufacturing in China – one in Tianjin and other in Huizhou. With a focus on smart technologies in its smartphones, the Samsung had expanded its investments in factories located in Vietnam and China.

Recently, Prime Minister Narendra Modi and South Korean President Moon Jae-in inaugurated its largest mobile production factory in Uttar Pradesh’s Noida.

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