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.

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.