World’s biggest smartphone maker Samsung Electronics Co Ltd is considering suspending operations at one of its mobile phone manufacturing plants in China.

This according to Electronic Times is as a result of a decline in sales and a rise in labour costs.

In line with that, Samsung might stop producing mobile phones this year at Tianjin Samsung Telecom Technology, located in the northern Chinese city of Tianjin.

The company mentioned on Monday that nothing had been decided on the fate of its Tianjin operation.

“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,” it said.

Just five years ago, Samsung had 20 percent of the Chinese market only to see that fall to less than 1 percent this year, outgunned by Huawei, Xiaomi and other Chinese brands.

The company is also under pressure to jump-start faltering smartphone sales after posting its slowest quarterly profit growth in more than a year.

In addition to the Tianjin plant, Samsung also has another Chinese phone factory in Huizhou.
The company has focused its major mobile phone investments on production facilities in Vietnam and India.
It opened the world’s biggest smartphone factory outside New Delhi last month, which is slated to become an export hub.