Samsung officially decides to close one of its factories in China

Samsung was once very active in the Chinese smartphone market, but its share of the stock has been eroding steadily in recent years. This is very bad for the company, because according to some estimates, its smartphones represent only 1% of the smart phone market in China. No wonder the company has decided to close one of the smart phone factories in China.

Samsung announced Saturday that it would close one of its smartphones in China. The factory is located in the city of Tienjin, in the north of the country, and employs about 2,600 people. The South Korean company will compensate workers and give them the opportunity to move to other Samsung facilities. The factory will be closed before the end of this year.

The company's share of the Chinese smartphone market fell to less than 1% in the first quarter of this year, due to intense competition from local companies such as Huawei, Xiaomi, Oppo and Vivo. This is a dramatic decline, given that China's market share in China was 15% in 2013.

Samsung also announced that it will continue to operate its second plant in Huizhou City. The factory, which was closed, manufactured 36 million smartphones a year, while Huizhou made 72 million, at least according to estimates. Samsung has not yet confirmed the capabilities of the factory.