Samsung has been manufacturing phones in China for years, but it is now pushed out by economic realities. In an attempt to improve production, the firm has closed its last local phone factory in Huizhou.
In the country, it's still selling phones, but they're going to be made elsewhere in the world. Although the company had not commented on its reasons, it had little reason to stick around— competitors and economic challenges are pushing it out.
Although Samsung is one of the international mobile market's heavyweights, it has been struggling for years in China. For a while, Counterpoint Research found, the tech giant accounted for only 1 percent of Chinese phone buyers.
It's sandwiched between bargain mobile shoppers, who tend to buy mainly from Chinese manufacturers, and high-end consumers who opt for Apple and Huawei phones predominantly.
There is not much space in the west, and Samsung's plight has not been improved by handsets like the Galaxy A-series. There is little point in building phones in the country if plants are more than up to the job elsewhere.
The business of the company was already in risk. A plant was closed late in 2018 and production at Huizhou was cut in June. With Samsung and others, there are other considerations that may be at hand.
Labour costs are rising in China, and even more popular smartphone manufacturers have not been helped by an ongoing economic downturn. All the odds are correct now against Samsung, and in the near future it is doubtful that things will be more favorable.