In a factory compound called “Silicon Valley Power” in the southern Chinese city of Shenzhen, one of the white-tiled buildings is locked. Until last year, it was home to a mobile phone assembly line. “They closed down and sent the workers home,” says a guard.
In Shenzhen, the epicentre of the global handset industry, such closures are quite common these days.
Chinese consumers’ love affair with smartphones, with their internet access and superior functionality, is wreaking havoc with white-label makers, the thousands of small companies that have been providing less affluent consumers with low-end phones.
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