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Korean media: Samsung considers suspending Tianjin mobile phone factory operations and shifting to India and Vietnam

by:YoukingTech     2021-08-06
However, the world's largest smartphone maker said on Monday that it has not yet made any decision on whether to stop its Tianjin business. A statement provided by Samsung Electronics to Reuters stated that “the entire smartphone market is facing difficulties due to slowing growth. The Tianjin Electronics Company under Samsung Electronics aims to improve competitiveness and efficiency.” Just five years ago. , Samsung Electronics’ share of the Chinese market has reached 20%, but this year’s share in the Chinese market has fallen to less than 1%. 'China Times' quoted the latest statistics from the market research organization Strategy Analytics in April this year, saying that in the fourth quarter of 2017, Samsung's mobile phone sales in the Chinese market were only 9.8 million units, and the market share fell to 0.8%. This is also the first time since 2011 that Samsung's mobile phone sales in the Chinese market fell below 10 million units in a single season. Samsung Electronics' market share in China has been surpassed by Huawei, Xiaomi and other Chinese brands. Especially in terms of pricing, Chinese brand mobile phones are more competitive than this Korean smartphone manufacturer. Observer.com noted that as early as 2010, South Korea’s Chosun Ilbo reported that Samsung Electronics planned to produce 269 million mobile phones worldwide that year. Among them, over 60% of mobile phones are made in China, with the Tianjin factory producing the most. It is understood that Tianjin Samsung Communications was established in 2001 with the aim of becoming Samsung’s global mobile phone production base, and played a huge role in the glorious period when Samsung’s mobile phone sales exceeded 15 trillion won in 2013, which is equivalent to the 'China headquarters' of Samsung mobile phones. However, with the slow sales of Samsung's mobile phones in the Chinese market, the status of Samsung's Tianjin factory has been shaken several times. Observer.com found that Tianjin Samsung Communication Technology Co., Ltd. is still hiring staff related to the mobile phone business, but the position is a mobile phone software test engineer and the work place is in Shanghai. In addition to the rapid decline in China's market share, Reuters said global sales of Samsung's smartphones are also rapidly declining. Reuters quoted a report from South Korea’s Electronic Times on Monday that Samsung Electronics of South Korea is considering suspending operations at a mobile phone manufacturer in China due to declining sales and rising labor costs. Reuters reported a screenshot. Korean media said that Samsung Electronics may stop producing mobile phones in Tianjin Samsung Communication Technology Co., Ltd. this year. The company is Samsung's mobile phone production base in China. This move is considered that Samsung Electronics may withdraw from here. The Penguin 'Digital Pug' said that the source of the news comes from Samsung's downstream suppliers, saying that Samsung has issued a policy to stop production to partner companies. 'Samsung has told us that there will be no more orders.' An industry chain source said. Earlier, the company’s quarterly earnings report showed that its quarterly profit growth has been the lowest in more than a year as competitors have launched lower-priced, feature-rich smartphones. In addition to the Tianjin factory, Samsung Electronics has another Chinese mobile phone factory in Huizhou. The Penguin 'Digital Pug' said that the mobile phone produced by the Huizhou factory was handed over to the Tianjin company for review. In addition to mobile phones, due to Samsung's numerous product lines, Samsung Electronics also owns Tianjin Samsung Vision and other factories in Tianjin to produce display screens, lithium-ion batteries, substrates and other products. According to the official website of Samsung Group, Samsung Vision Mobile Co., Ltd. is also hiring manufacturing technicians in Tianjin. No longer choose China to focus on investment in Vietnam and India In recent years, Samsung Electronics’ main investment in the mobile phone business has been concentrated in Vietnam and India. Last month, the company opened the world's largest smartphone factory near the Indian capital New Delhi, which is expected to become an export center. Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in jointly unveiled the Samsung factory. As reported by the Yonhap News Agency in South Korea, 'Electronic Times' reported that Samsung Electronics' Tianjin factory in China produces 36 million mobile phones per year, and its Huizhou factory produces 72 million mobile phones per year. , And its two factories in Vietnam produce a total of 240 million mobile phones each year. According to data from market research firm IDC, in the second quarter of this year, Samsung’s total global shipments decreased by 10.4% compared with last year, and its market share was lower than 22.9% in the same period last year. However, Samsung Electronics is still the world's largest smartphone manufacturer. In order to boost the performance of the mobile phone sector, Samsung is also taking various measures.
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