Monday, August 26, 2019
Samsung Electronics Lays Off Employees at Its Only Smartphone Factory Left in China
A Measure Prompted by Continued Slump
Samsung Electronics Lays Off Employees at Its Only Smartphone Factory Left in China
  • By Kim Eun-jin
  • June 6, 2019, 14:52
Share articles

Samsung Electronics will lay off employees at its only smartphone factory in China.

Samsung Electronics will execute a voluntary retirement program at its only smartphone factory in China. The global smartphone giant is taking special measures as its slump in the Chinese market has continued.

Samsung Electronics is pushing for a reduction of its workforce at its smartphone factory in Huizhou, Guangdong Province, Chinese economic media outlets said on June 5. The Huizhou plant was built in 1992 and has been producing smartphones since 2006. The plant produced 62.57 million smartphones in 2017, accounting for 17 percent of Samsung Electronics' worldwide production in that year.

Samsung Electronics has decided to take the action in consideration of its market share in China, smartphone industry experts say. The company shut down its smartphone factory in Tianjin, China, last December.

Samsung Electronics had enjoyed a 20 percent market share in China by 2013. However, its share plunged as local companies such as Xiaomi, Oppo, Vivo and Huawei penetrated the market.

Samsung Electronics' market share in China stood at the 0 percent range until last year, but rose to the 1 percent level in the first quarter of this year, market researcher Strategy Analytics (SA) said. Although performance has improved slightly, analysts say that Samsung failed to increase its market share as much as it had hoped. The company is currently producing 40 percent of its total smartphone volume in Vietnam.