Samsung might stop making phones at one of its factories in China, a report states.
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Samsung is apparently checking out suspending operations at one of its phone factory in China as sales fall and labor expenses increase.
It might stop making phones at Tianjin Samsung Telecom Technology, according to Reuters, which pointed out South Korea’s ElectronicTimes Samsung informed the news company Monday that the fate of the factory, which lies in the northeastern city of Tianjin, hasn’t been figured out.
A downturn in need for Samsung’s most recent phones, the Galaxy S9 and S9 Plus, harmed its 2nd quarter profits this year, with profits in its mobile department decreasing 22 percent in the quarter to 22.67 trillion won ($202 billion).
It likewise cautioned that “market condition will likely remain challenging in the second half amid pricing competition and new product launches.”
Last Thursday, Samsung introduced its brand-new Galaxy Note 9 flagship phone at the Barclays Center in New York
The Tianjin factory is among 2 in China, according to Reuters, and makes 36 million phones a year. Its other plant, situated in the main city of Huizhou, produces 72 million systems each year.
“As the overall smartphone market faces slowing growth, Samsung is currently focused on raising the efficiency of our operations in Tianjin Samsung Telecom Technology,” a Samsung representative stated in a declaration. “No decision has been made on the withdrawal of the Tianjin operations.”
The business has actually concentrated on production centers in Vietnam (where its 2 factories make an integrated 240 million systems a year) and India over the last few years.
Earlier this month, its more affordable rival Huawei projection 200 million deliveries and revealed its wish to take Samsung’s throne as world’s biggest phone supplier by the end of 2019.
First released onAug 13 at 3: 01 a.m. PT.
Updated onAug 14 at 7: 38 a.m. PT: Adds Samsung remark.
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