South Korean technology behemoth Samsung Electronics has closed its final smartphone production unit in China, Reuters reported Wednesday, amid rising labor costs and comparatively lackluster economic growth.
The factory, located in the southern city of Huizhou, followed the shuttering of two other manufacturing bases in Tianjin and Shenzhen last year. It employed 6,000 workers and produced 63 million handsets in 2017, Reuters reported, citing South Korean media.
Samsung has faced an uphill battle in China in recent years as domestic smartphone players have slashed its market share from 15% in 2013 to 1% earlier this year.
The company expects to see a significant decline in earnings during the third quarter, anticipating operating profits of approximately 7.7 trillion South Korean won ($6.4 billion) on consolidated sales of around 62 trillion won, according to a Tuesday company statement. That would represent a 56% fall in operating profit compared with the same quarter last year, according to Caixin calculations.