The company is considering whether or not to suspend its smartphone manufacturing at its Tianjin plant in China, reports Reuters. The South Korean company is reportedly considering the suspension as a way to fight against falling sales and rising labor costs. In a statement, Samsung said, “The overall smartphone market is having difficulties due to slowing growth. Samsung Electronics’ Tianjin telecom enterprise aims to focus on activities that increase competitiveness and efficiency.”
Just five years ago, Samsung had a 20% market share in China, but that has slumped as Chinese smartphone makers like Huawei and Xiaomi have surged in popularity. Samsung’s Tianjin last manufactured 36 million smartphones last year, while its other Chinese plant in Huizhou made 72 million smartphones.