Chinese mobile phone manufacturers close as smartphone market slows

G.Credit Electronic Company, A Hong Kong-financed manufacturer in Shenzhen, has shut down its factories, sparking concerns of an increasing slowdown in China's smartphone market. This closure follows after other electronics goods manufacturers have shut down in recent months in response to the decline in demand for electronic merchandise in both domestic and foreign markets. In addition to decreasing demand and the rising costs of running a factory have played a part and caused some factories to relocate. However, technology research firm, IDC predicts that total smartphone sales in mainland China this year will grow to 424 million units, up form last years 420 million.   

The slowdown in the Chinese economy along with the overcapacity in the mobile phone market has hurt local players. Photo: AFP