Sony announces to shut its manufacturing plant in China amid deteriorating market share
Samsung and Sony have recently announced officially that the South Korean manufacturer is going to shut its manufacturing plant in China, the Huizhou factory in Guangdong China is subject to close in the near future.
Samsung mobile also hinted that the company is focusing on setting up manufacturing plants in China and Vietnam in the future.
There could be other reasons for shutting down mainland plant in China however, analysts say that it is undoubtedly related to deteriorating market share in China. Samsung currently holds only 1% of market share in the Chinese smartphone market which is nothing for a world leader in the smartphones market, Samsung had a bigger chunk of market share 15% in 2013 and within 6 years the market share has been disappeared from the company’s books.
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This deterioration started happening after Chinese manufacturers including Huawei, Xiaomi, Oppo, and others started attracting the market with their innovative and quality products. Most of Samsung’s market share has been eaten by the Chinese smartphone makers.
Sony is also disappointed by the Chinese Market
Samsung is not alone that have been disappointed by the Chinese market, another big name Sony has also decided to shut down its smartphone factory in Beijing. Sony has announced that it will only manufacturer its future units in Thailand. Sony’s situation in the Chinese market is even worse, the company’s sales in the mainland is just a grain of salt, according to the details Sony only holds less than 0.05% market share in China.
However, Sony’s competition in China was not only with Chinese manufacturers but also with Samsung and Apple, the company was unable to compete well with South Korean and US manufacturer in high-end mobile devices resulting in a fatal decline in sales.
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