Samsung has finished building smartphones in China

While Samsung is one of the heavyweights in the global smartphone market, it has struggled in China for many years. The tech giant has accounted for just 1 percent of Chinese phone buyers for a while, Counterpoint Research found. There is a squeeze between budget buyers who usually buy from Chinese brands and high-end customers who mainly come to Apple and Huawei devices. There's not a lot of room in the middle, and handsets like the Galaxy A series haven't done much to help Samsung's situation. Building phones in the country is not so much a point when facilities elsewhere are more than up to the job.

The company's production was already in danger. It suspended a factory in late 201[ads1]8 and reduced production at Huizhou in June.

There are other factors that can be played for Samsung and others. Labor costs are growing in China, and an ongoing economic downturn has not helped sales even for more successful smartphone manufacturers. All odds are against Samsung right now, and conditions are unlikely to be more favorable in the near future.