Top dog Samsung loses market share

Top dog Samsung loses market share
About Author
Christian Boas

Samsung’s mobile phone heels have had a great success this year. It is a downward trend that began in the Christmas quarter of the previous year and continued until 2018. Both IDC and Strategy Analytics report that Samsung’s smartphone sales dropped by about 13 percent in the last quarter. This is followed by a 10 percent decline in the second quarter, a 2 percent decline in the first quarter, and a 4 percent decline in the fourth quarter of 2017.

It is a clear sign that the Samsung Galaxy Note 9 and Galaxy S9 devices were not competitive in the high-end segment. Samsung is also losing ground in the middle and lower parts of the smartphone market.

Huawei, is the important rival of Samsung. So it is not surprising that the Chinese are contesting the South Koreans more and more market share. Huawei’s smartphone sales increased 32 percent this quarter. Huawei has overtaken Apple as the second largest smartphone maker in the world again, for the third time. A large part of this growth should be due to the popular flagship P20.

Xiaomi, another of Samsung’s big Chinese rivals, whose growth is also driven by Samsung’s decline. Xiaomi’s smartphone sales increased 20 percent in the last quarter, putting it fourth behind Apple in global smartphone sales.

“Samsung is losing ground to Huawei, Xiaomi and other Chinese competitors in the vast markets of China and India,” said Neil Mawston of Strategy Analytics. “Samsung needs to solve its problems with China and India before it’s too late.”

Samsung admits that it is struggling with the mid to lower end of the smartphone market, but in its earnings forecast, the company indicates that the situation could soon improve. Samsung expects sales to grow in the fourth quarter, largely due to the mass-market product line-up enhanced with the new Galaxy A7 and A9. Samsung also predicts that the entire smartphone market will grow in 2019, but whether the company is part of this growth remains to be seen.

Samsung is due to launch three Galaxy S10 models and a foldable smartphone early next year. Samsung’s foldable phone is expected to appear for the first time at the company’s developer conference next week. While these high-end devices are indispensable to Samsung’s smartphone brand, increasing competition from Chinese competitors in the mid-range and lower-smartphone market is key to Samsung 2019. Because Huawei and Xiaomi master the art of bringing premium features to cheap smartphones. And there are more Chinese competitors willing and willing to challenge Samsung’s dominant position.

To Top