As the emerging Chinese OEMs claim the local and global markets, Samsung is struggling to keep afloat in the Chinese market which was one of its strongholds earlier.
According to industry reports, Samsung might be shutting down its last production plant in China.
Even though Samsung is the top smartphone manufacturer globally its market share in China has dropped to less than 1 percent in the market. There were times when the phone maker owned 20 percent of the Chinese market.
The company has made several efforts to recover its lost position in the Chinese and Indian markets, where the Chinese OEMs are slowly and gradually claiming Samsung’s throne. In an effort to regain its status, Samsung shifted its focus towards launching more mid-range smartphones.
In September 2018, the Korean Giant decided to ask ODM (Original Design Manufacturer) Wintech, the company that manufactures Xiaomi smartphones, to manufacture Galaxy smartphones. This helped the company cut down its prices in the local Chinese market.
Despite all these efforts, Samsung was not able to reclaim its throne in the Chinese market and is now shutting down its last production plant in China as well. The plant started producing Smartphones in 1992 and is currently the last functional Samsung plant in China.
In June, the company laid off many workers from this plant along with closing down two of its other manufacturing plants as well.
If this continues, Samsung will exit China by the end of this year.