Samsung Electronics is struggling in China, the world’s largest smartphone market. According to market survey firm Strategic Analytics on Sunday, Samsung took up 1.3 percent of the Chinese market in the first quarter of this year. The figure is slightly up from 0.8 percent posted in the fourth quarter of last year, but is still insignificant.
In 2013, Samsung would stand out to vie for the No. 1 or No. 2 spot with Apple by accounting for 19.7 percent of the Chinese market. However, the company had been continuously losing its market share in the face of intensifying competition with Chinese brands boasting of cost-to-value competiveness for years, and saw its market share fall below the 1 percent level in the fourth quarter of last year. Huawei (21.2 percent), Oppo (17.4 percent), Vivo (15.1 percent) and Xiaomi (13.0 percent) ranked first to fourth, respectively in the first quarter of this year.
Samsung is reportedly set to launch less expensive alternatives to the S8 and the A8 in the Chinese market. The company thus seeks to expand its market share by boosting the lineup of products at low- to intermediate-range prices on top of high-end products. “Samsung is set to introduce alternative products to smartphones that were introduced one year ago in the Chinese market, which reflects its strategy to stage direct competition with Chinese brands in cost-to-value ratio,” an electronics industry source said. In its shareholder meeting in March, Koh Dong-jin, head of Samsung’s IM Business, said, “We are regaining our market share in the Chinese market, with sales of the Galaxy S8 and others recording nearly double-digit growth.”
Dong-Il Seo firstname.lastname@example.org