samsung

According to a recent Reuters report citing Samsung, the company officially stated today that it has ended its phone production activities in China. The reasons given by the Korean behemoth are referring to “intensifying competition from domestic rivals“.

Samsung initially started by cutting production back in June at the plant in the southern city of Huizhou, preceded by suspending another manufacturing facility at the end of 2018.

Samsung ending its phone production in China comes in the context of other manufacturers moving production away from the country, mostly due to rising labor costs, the economic slowdown, and, in case of American companies, due to tariffs imposed by the U.S. government.

The report mentions that while Sony will also cease manufacturing at its Beijing plant, relying solely on its Thailand factory to make smartphones, Apple has no plans, for the moment, in making any changes to its China reliance.

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