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Samsung is the biggest producer of smartphone handsets in the world
Electronics giant Samsung is considering suspending production at one of its biggest production facilities in China, according to a report by Reuters.
The report cites falling sales and increasing labour costs for the decision.
“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,” the company said in a statement to the press.
Last year Samsung produced a total of 317 million smartphones, around 36 million of which were produced at the Tianjin facility in China.
Samsung is facing strong competition from its regional rival, Huawei, who has recently overtaken Apple as the world’s second biggest producers of smartphones. Huawei remains on course to produce in excess of 200 million smartphones this year, in part due to the success of its recently launched P20 Pro flagship brand.
At present, Samsung enjoys a 21.6 per cent market share of the global smart phone market. With Huawei looking to dramatically increase its handset output this year, Samsung could well see that market share eroded by at least a couple of percentage points.
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