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samsung electronics to cut china phone output as market share sinks - samsung
Yang and Brenda Gore/SHANGHAI (Reuters)-
South Korea's Samsung Electronics Co. , Ltd. said on Wednesday that it plans to cut production at a smartphone factory in China, which accounts for less than 1% of the world's largest smartphone market due to competition from domestic competitors.
In the first six months of production cuts in the southern city of Huizhou, Samsung said it would close its only mobile phone factory in the northeastern city of Tianjin. The move is said to be more efficient.
According to data from Strategy Analytics, Samsung, the world's largest smartphone maker, has shrunk its share of the Chinese market from around 20% in 2013.
In the middle of the year, there was a reaction.
After the diplomatic spat, South Korea's mood, as well as turning to local champions such as Huawei Technology Co. , Ltd. as China continues to deteriorateU. S. relations.
However, in the three months of 2019, Samsung's smartphone sales in China increased by 40% over the first three months, which helped to promote the high-end models and cheaper quality --
Counterpoint Research released a report in April.
Samsung made a statement Wednesday after Caixin, a financial magazine, reported that the South Korean company had offered voluntary job cuts to some employees at the Huizhou factory.
When Reuters contacted Samsung, Samsung declined to elaborate on the plant's capacity, the number of employees or the extent of production cuts.
A spokesman for China told Reuters that according to market conditions, some adjustments will be made to production and employees ".
He declined to give details.
The smartphone maker's share price is 1.
Seoul's afternoon trade volume rose 0%.
The KOSPI benchmark stock index fell 1. 0%. (
Yang Heqing and Wu Enda reported;
Supplementary Report of Shanghai News editorial office;
Editor of Darren Schuettler and Christopher kuhin)
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