By 2019, its market share dropped to just 1% in the face of stiff Chinese-based competition like smartphone makers, Huawei, Xiaomi, and Oppo.
The shift in production from China was a response to the market, as well as the higher costs of doing business in China. The labor costs were steadily rising, rental costs were higher, and increased taxes in China were the last straw for Samsung.
Samsung opened the world’s largest mobile phone manufacturing facility on the outskirts of the Indian capital of New Delhi last year.
In October 2019 Samsung Electronics announced that although it closed its last Chinese smartphone factory, it would continue producing some smartphones in China. They started an outsourcing program for an Original Design Manufacturer (ODM).
Samsung continues selling phones that are made in China in the Chinese market through ODM production. Smartphones will be designed and manufactured by an ODM company which will then rebrand them as Samsung.
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