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Samsung Abandons China! No More “Made in China” Smartphones

Samsung store

Samsung today put an end to a plan that it had been implementing for some time. Although it has already seen China as one of the best markets for producing its smartphones, this is no longer true. Therefore, they announced today that they will leave the country for good, stop producing smartphones in Chinese territory.

Among several other motivations, Samsung’s presence in the country does not seem to be as well received as in times past. In the past six years the brand has seen its market share completely destroyed, going from 15% to 1% in the first quarter of 2020.

Samsung leaves China

Samsung had its days numbered in China a long time ago

According to an analyst at Cape Investment & Securities (via Reuters), users in China show a great preference for more affordable smartphones manufactured by national brands. Those who decide to invest more money and buy a top-of-the-range smartphone overwhelmingly opt for offers from Apple or Huawei.

In addition, the Chinese market has gone through times of great change, with the economy slowing down considerably and the cost of labor rising considerably. So, in addition to not being very popular smartphones in the country, Samsung decided to make the transition from its factories to ” neighboring ” countries.

Currently, the brand is focusing on countries such as India and Vietnam, which have a much more attractive cost / quality ratio in terms of available labor.

Samsung is not the only manufacturer to explore new opportunities

Samsung is far from the only manufacturer to explore better options for the manufacture of its smartphones. Clearly, China is no longer the great power of other times, with many other countries (mostly Asian) that present themselves as much more profitable options.

For example, Sony has also revealed its intentions to leave Beijing and transition its factories to Thailand. I recall that Xiaomi itself started a major investment some time ago in the construction of large factories in India.

Currently, all Xiaomi smartphones sold in India are manufactured domestically. Considering that India is the second largest market in the world, this is an impressive achievement.

Lizzie Kristina
Founder of global viral social media sensations Overheard in Waitrose and Sellotape Selfies at age just 21, Lizzie is best known for her unique creative flare, social media influence and highly skilled approach as a digital marketing specialist. Editor-in-Chief of 'TechGrits'.

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