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Samsung may suspend operation at Tianjin factory due to slowing sales in China
Samsung may suspend operations at China mobile phone plant: report – Reuters
What happened: Samsung is considering suspending operations at its Tianjin factory due to faltering sales and rising labor costs. The electronics giant also noted that market conditions will likely remain challenging throughout the rest of 2018 amid pricing competition and new product launches.
Why it’s important: Last month, Samsung posted disappointing quarterly earnings which showed the slowest quarterly profit growth in more than a year. The electronics giant is struggling to maintain its title as the world’s largest smartphone vendor facing rivals like Huawei who are set to take the throne it with cheaper handsets. The Tianjin factory is one of two in China. In recent years, Samsung has invested more heavily in production facilities in Vietnam and India.