Samsung has been the dominant player when it comes to the smartphone market, in China and worldwide. But a report by Strategy Analytics predicted that the Korean tech giant’s share in the Chinese smartphone market will drop below 2 percent in the fourth quarter.
The share is expected to drop to 1.6 percent, the reason for which is the overflow of cheap and affordable smartphones from local manufacturers like Xiaomi, Huawei, Oppo, etc. As compared to the tech giant, the competitors are offering the exact same features at about half the price. Back in 2015, Samsung held over 20 percent of the Chinese market share.
According to The Korea Herald, Samsung has cut close to 20,000 jobs in China owing to weak sales. There has been a change in the corporate hierarchy, with a new head of the Chinese unit now taking over.
Lee Byung-Tae, a professor at Kaiser College of Business, said,
“It seems almost impossible for Samsung to upend the Chinese smartphone market recognized by local firms with quality products and affordable prices”
“Since successful Chinese firms are expanding their presence in budget smartphone markets, Samsung and lg’s global presence will shrink further unless they secure competitiveness against chinese firms.”
The Korean company needs to up its game not just in the flagship but also in the mid as well as budget smartphone markets to take back its position in the Chinese market.