Establishing a foothold in the Chinese market is very important for the vast majority of technology companies, and any failure usually really hurts them from the point of view of profits. However, the competition on this market is getting better and better, which is causing problems for manufacturers worldwide. The South Korean Samsung is also a great case.
Although Samsung is the world's number one smartphone manufacturer and its sales are still significantly higher than all its competitors, it is not doing well in the Chinese market. The manufacturers there, led by Huawei and Xiaomi, are able to produce smartphones with very interesting hardware at excellent prices, which many Chinese residents hear about. However, these manufacturers are not afraid to produce flagships, which in many respects can withstand comparisons with models from Samsung or Apple, but are usually cheaper. Also because of this, Samsung has a tiny 1% share in the Chinese market, which, according to Reuters, took its first big toll – namely the closing of one of its factories.
According to available information, the factory in Tianjin, where around 2500 employees worked, pulled out the "black Peter". This factory churned out 36 million smartphones per year, but as a result, they had no market in the country and their production was therefore useless. The South Koreans therefore decided to close it and rely on their second factory in China, which manages to produce roughly double the number of smartphones produced in Tianjin annually.
