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Samsung's Vietnam factory is operating at less than half, regretting closing production lines in China

2022-08-06 15:00:15BaiYing rambling

Media reports indicate that the operating rate of Samsung's factories in Vietnam has dropped to less than half, and workers have been adjusted from 6 days a week to three days a week, and there used to be overtime now, maybeAt this point it has regretted moving the production line out of China.

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Since a few years ago, Samsung has successively moved mobile phone production lines and TV production lines out of the Chinese market, and set up production plants in Vietnam, India and other places. The nominal reason is that it is made in China.The cost is high, while the labor cost in Vietnam, India and other places is lower. At present, Samsung has no TV factories and mobile phone factories in the Chinese market.

However, Samsung's wishes are good, but the reality is not optimistic. The work efficiency of Vietnamese workers is not as good as China, and the work efficiency of Indian workers is lower and the quality of work is worse, soIn recent years, the quality of products produced by Samsung in these two places is obviously inferior to the products produced in China before.

As Samsung moved its production lines out of China, its mobile phone market share in China has fallen sharply, and now Samsung's mobile phone market share in China is only about 1%; In the global market, Samsung mobile phones are facing the siege of Chinese mobile phones. Chinese mobile phones have defeated Samsung in the Indian market since Q3 in 2017, and now Chinese mobile phones are still besieging Samsung in the European market.

Samsung TV is also facing fierce competition from Chinese TVs. Today, the top four domestic TV brands in the domestic TV market are all domestic TV brands. Samsung TV's share in the domestic TV market has fallen far behindChinese TV brands; as Chinese TVs gain advantages in the domestic market, they are also competing with Samsung in the European and American markets. Hisense, TCL, etc. have a large market share in the European and American markets.

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Although Samsung moved its TV, mobile phone and other production lines out of China, it still relies heavily on the Chinese industrial chain today.The LCD panels of Samsung TVs are mainly supplied by BOE and TCL Huaxing, two major panel companies in China. BOE and TCL Huaxing together account for more than 50% of the global LCD panel market.

Samsung is trying to regain its glory in the panel market by developing new panel technologies such as OLED, QD-OLED, and microLED panel technologies. Today, Samsung occupies the majority of the OLED panel market for mobile phones.market share, but in the TV panel market, LCD panels produced by Chinese panel companies still dominate.

Samsung once competed with Apple in the high-end mobile phone market, but the global high-end mobile phone market data released in the first quarter of this year shows that Samsung's high-end mobile phone market share is also declining, perhaps thisIt is also related to the decline in the quality of mobile phones produced in Vietnam, India and other places.

In addition, although the labor cost of Chinese manufacturing has risen, due to the higher production efficiency and logistics efficiency of Chinese manufacturing, the actual production cost may not be higher than that in Vietnam, India and other places. At the same time, ChinaThe unique capacity elasticity of manufacturing is incomparable to Vietnam and India. As a result, Apple still sends most of its iPhones to factories in mainland China, and Apple's market share increase may be related to the quality of mobile phones made here.Higher inseparable.

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It is reported that the inventory of Samsung mobile phones is now as high as 50 million. In order to clear the inventory, Samsung is aggressively reducing the prices of its mobile phones, and at the same time suspending the procurement of components until the end of August, in order to clear the inventory.Having to reduce the operating rate of production lines in Vietnam to less than half, it can be seen that Samsung is now in trouble.

Samsung's closure of all its TV and mobile phone production lines in mainland China seems to be a bit of a loss, leading to today's dilemma, perhaps now that it regrets completely closing its factories in the Chinese market at that timeCome on.

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