A recent report from Korea, cited by Reuters, claims that Samsung is suspending its operation at its mobile factory in China. While Samsung said that nothing has been decided regarding Tianjin Samsung Telecom Technology operations, the South Korean newspaper claims that Samsung might stop manufacturing mobile phones this year at the aforementioned plant.
“Slumping sales and rising labor costs” are mentioned as possible reasons behind this move. “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,” Samsung told Reuters.
China is the world’s biggest smartphone market and Samsung has around one percent share, with local players like Huawei, OPPO, and Vivo dominating the landscape.