Samsung cuts production in China as local struggles continue

Samsung cuts production in China as local struggles continue
Samsung has been struggling in the Chinese smartphone market for quite some time. In fact, around six months ago the company shut down one of its factories in the region. Now, suggesting things have improved little, Samsung has confirmed that its scaling back production at its only remaining Chinese manufacturing plant. 

The company still seems to be struggling in China


At its peak back in 2013, Samsung accounted for an impressive 20% of all smartphone shipments in China. But as local rivals with thinner profit margins became more competitive, the company’s sales quickly began to decline. Over the course of the past year, Samsung has struggled to retain a 1% market share and, while the Galaxy S10 has certainly boosted performance, it seems sales still aren’t at the required level.

The company’s plants in China previously served both local and international markets, but over the past few years Samsung has shifted a big portion of its production over to countries such as India, leaving Chinese factories to cover local demand only. As such, any cuts suggest the company’s revival strategy isn’t going as smoothly as hoped.

The South Korean-based brand hasn’t yet revealed the exact extent of these latest production cuts, so the adjustments could potentially be minimal. But it’s reported that Samsung is offering voluntary layoffs with compensation to interested employees until the 14th of June.

Ultimately, it’ll remain to be seen how Samsung continues to perform in China throughout the rest of the year, but the company has made no secret of the fact that it’s betting heavily on the revamped Galaxy A series, so hopefully sales of these start to pick up over the coming months as they have done on an international scale. On a related note (no pun intended), the Galaxy Note 10 and Note 10 Pro in addition to their respective 5G variants should provide a decent boost starting in September, much like the Galaxy S10 lineup.

Samsung could grow considerably on an international scale


Although Samsung may not be performing as first hoped in China, the South Korean giant could see a substantial sales boost internationally over the course of the coming months. According to an investor note released by analyst Ming-Chi Kuo recently, Chinese rival Huawei stands to lose as many as 90 million smartphone sales this year due to the recent US trade ban and its subsequent inability to ship smartphones with Google’s services. 

The possibility of the company releasing an Android alternative and avoiding such a large sales decline does certainly exist, but if it fails to do so Kuo believes Samsung will benefit significantly. In fact, it may ship an extra 30 million devices by the end of 2019 thanks to an increased market share across Europe and other international markets. Overall, the increase could see Samsung’s sales top 320 million units by the end of December, placing it significantly ahead of second-place Apple which, in this same scenario, could post shipments of 200 million units. Huawei, on the other hand, may drop down into third place with just 180 million units sold.

Regarding the coming years, Samsung’s sales could continue to climb. Kuo believes Huawei’s reputation will take a significant hit this year to the point that certain consumers may find it hard to trust the brand ever again. The company also faces the important issue of no access to American services, a crucial selling point of most smartphones internationally. All of this essentially means that, unless Huawei’s US trade ban is listed, rival companies such as Samsung could potentially continue to eat up Huawei’s market share until the brand is no longer considered a major player.

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21 Comments

1. iloveapps

Posts: 855; Member since: Mar 21, 2019

I wanna know their views about this. cmdacos, Tipus, blingblingthing, back_from_beyond, LawnBoy, TedKord , Maherk PSAfromThisGuy sissy246 MINDoSOUL Oldschool50 GalaxyLeads_iCrapFollows Scarface21173 Papa_ji Alcyone Sgodsell Dollallama Knownhost Onelove123 Ichimoko

2. notfair

Posts: 753; Member since: Jan 30, 2017

hey, you forgot me! shame on you.

4. sissy246

Posts: 7124; Member since: Mar 04, 2015

LOL, how dare him, LMAO He obviously has no life and set in his room with us on his mind. That is sad he has to keep all our name down.

18. sgodsell

Posts: 7416; Member since: Mar 16, 2013

He wants to know some of our views. Well Joshua mentions that Samsung could see 320 million units in sales by December. Well last year Samsung had over 300 million in sales. The S10 and Ann series have been doing quite well for Samsung. Samsung shipped 73 million smartphones in Q1, and that is only 20 days of S10 sales for Q1. In the next couple of weeks we will see how much Samsung, Huawei, and Apple have shipped in Q2. This will be a good indicator of where the smartphone market is going. By then I can give you a much better idea.

5. OneLove123

Posts: 1161; Member since: Aug 28, 2018

What about it? What does samsung have to do with me?

8. Tipus

Posts: 893; Member since: Sep 30, 2016

"I wanna know their views about this." Lmao!! Never stop posting, bruh :)))

9. iushnt

Posts: 3122; Member since: Feb 06, 2013

Are you not too deep into it?

11. Fred3

Posts: 556; Member since: Jan 16, 2018

Damn did you make a hit list?

13. oldskool50 unregistered

I dont care about sales period, regardless of brand. How you feel about this..... Android 2.8B vs iOS 1.2B Samsung most sold devices 425M with selling 1B devices 4 times while Apple capped at 220M and sold 1B one time. It's any OEMs pro pen to deal with competition, not mine. Only you care about things that dont matter. Sales numbers have zero effect on my choice of product to buy. Samsung hasn't had high in China for years. So what's the big deal now? Keep paying your $1000 for outdated crap and be happy.

14. kiko007

Posts: 7497; Member since: Feb 17, 2016

You contradicted yourself in a matter of two sentences. Just TechieXP1969 things I guess.

3. sissy246

Posts: 7124; Member since: Mar 04, 2015

OMG you are pathetic peaceboy . Samsung is also pricing their self out of the market like that other company. When you can get a great phone for $300 to $400 less a lot of people are going to do it. Hell when someone makes a phone as good as Samsungs note with all the note features for a lot less even I would change and give it a try. Now, tell me what you think of this. Samsung is not the only one struggling. https://9to5mac.com/2019/04/30/iphone-sales-drop/

6. apple-rulz

Posts: 2175; Member since: Dec 27, 2016

sissy246 your god Samsung is faltering, how does that make you feel?

7. sissy246

Posts: 7124; Member since: Mar 04, 2015

And so is your God Apple How does that make you feel, idiot And by the way, Samsung only has what I want right now in a phone. Like I said, if and when someone else comes out with a phone that has what I want I have no problem giving them a try, unless its apple that is, they will never get a dime of my money.

10. apple-rulz

Posts: 2175; Member since: Dec 27, 2016

You are seething with anger. You, and the rest of the SDF. I love it.

15. oldskool50 unregistered

No one is defending Samsung. China is t the whole planet, just like the US isnt. Without the US, Apple would be dead.

12. strawberry

Posts: 115; Member since: Feb 20, 2019

Samsung is too big to fail. it will be successful no matter what happens

17. hopper

Posts: 78; Member since: May 08, 2017

so was people in titanic and nokia

20. sissy246

Posts: 7124; Member since: Mar 04, 2015

Exactly Samsung will never fail just like the iPhone will never fail.

16. iloveapps

Posts: 855; Member since: Mar 21, 2019

Im missing Sgodsell in the comment section, he keeps posting iphone sales drop in every apple articles.

21. sissy246

Posts: 7124; Member since: Mar 04, 2015

Guess he is only posting the truth

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