Samsung may halt operations in China on rising labour cost, slumping sales

Leading smartphone manufacturer, Samsung Electronics Co Ltd., might stop producing mobile phones this year at Tianjin Samsung Telecom Technology, located in the northern Chinese city of Tianjin, Electronic Times reported.

The South Korean newspaper described the move under consideration as a potential withdrawal and is due largely to the rising labor costs and slumping sales.

However, the Korean smartphone maker said nothing had been decided on the fate of its Tianjin operation.

“The overall smartphone market is having difficulties due to slowing growth. Samsung Electronics’ Tianjin telecom enterprise aims to focus on activities that increase competitiveness and efficiency,” it said in a statement to Reuters.

Just five years ago, Samsung had 20 percent of the Chinese market only to see that fall to less than 1 percent this year, outgunned by Huawei, Xiaomi and other Chinese brands, particularly on pricing.

In Nigeria, it launched the latest additions to its Galaxy J-family products in Nigeria, which are Galaxy J4 and J6, and Galaxy A6+ in July.

Samsung has shown leadership and innovation in the Nigerian smartphone market, and its commitment to developing best-in-class products to meet the ever-changing needs of its consumers.

The South Korean tech giant is also under pressure to jump-start faltering smartphone sales after posting its slowest quarterly profit growth in more than a year, as rivals nip at its heels with cheaper, feature-packed models.

In recent years, Samsung has focused its major mobile phone investments on production facilities in Vietnam and India. It opened the world’s biggest smartphone factory outside New Delhi last month, which is slated to become an export hub.

According to the Electronic Times, its Tianjin plant in China produces 36 million mobile phones a year and its Huizhou plant makes 72 million units a year, while the two factories in Vietnam combined make 240 million units a year.