Matrix Report
Due to rising production costs in the People’s Republic of China, the South Korean phone giants, Samsung have moved their operations away from the country. The costs of production have risen in China due to the rising labour costs, and the economic downturn that is hitting the region.
Similarly, Sony is also closing their smartphone production operations in Beijing. They will possibly use their Thailand location as the only point of production. Samsung, on the other hand has made this a long process, since it suspended its operations in one of its plants late last year, and cut one of its plants off in June.
Samsung’s global market share was reduced due to the lack of Chinese buyers. People have moved to buying from largely local brands that are cheaper, and have better services. These services include better performance, and quicker after sales services. Then spare parts are not expensive, as well. Samsung’s market share went from 15% in 2013, to 1% in 2019. Companies such as Huawei Technologies and Xiaomi Corporation have built themselves as a formidable opponent in the smartphone game.
Apple, however remains to be the only major smartphone company to keep its production operations open in China. Samsung is eyeing cheaper alternatives such as producing in India and Vietnam.
