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Samsung curbs production in China

The company curtails production due to competition from local manufacturers. South Korean company Samsung has stopped the production of mobile phones in China due to increased competition from domestic competitors in the world's largest smartphone market. It is reported by RBC-Ukraine with reference to the Reuters agency.

It is noted that the company closed the last two plants during the year. Samsung discontinued handset production in China following other manufacturers that moved production from China due to rising labor costs and a slowdown in economic growth. Sony also said it is closing its smartphone manufacturing plant in Beijing and will only produce smartphones in Thailand. Apple still manufactures its products in China.

According to market research, Samsung's share in the Chinese market fell to 1% in the first quarter from 15% in mid-2013, losing to fast-growing Chinese brands such as Huawei and Xiaomi. “In China, people are buying low-cost smartphones from domestic brands and expensive phones from Apple or Huawei. Samsung has little hope of reviving its share, ”said Pak Sung-Skor, an analyst with the Chinese smartphone market. Samsung said they made this decision in an attempt to increase efficiency, but added that they would continue to sell in China. “Production equipment will be redistributed to other world production sites, depending on our global production strategy based on market needs,” the company said in a statement.