Phone

Samsung is having a tough time competing in China

It hasn’t been smooth sailing for Samsung in China. It’s having to deal with strong competition from local rivals while the political tensions between South Korea and China aren’t helping as well. The latest estimates from market research firms show that Samsung accounted for only 3 percent of the country’s smartphone market in the second quarter of this year.

A new report by the Korea International Trade Association revealed that at the end of June 2017, customers in China owned 48 million Samsung smartphones. This makes Samsung the sixth largest smartphone vendor in the lucrative Chinese market. It has slipped two places compared to the first quarter of last year.

Apple took the top spot in Q2 2017 as it accounted for 171 million handsets. Huawei, Oppo, Vivo and Xiaomi ranked second to fifth respectively.

Nearly 63 percent of the smartphones that were sold in China in the second quarter of this year were entry-level and mid-range handsets which cost less than 2,000 yuan or $300. Customers in China are evidently preferring cheap local alternatives over Samsung’s expensive high-end handsets.

High-end smartphones accounted for only 6.4 percent of overall sales in the second quarter and the iPhone stormed ahead with an absolute majority in this segment of the market.

The report calls on Samsung to restore the confidence of Chinese consumers in its smartphones. “Samsung should regain customer confidence in its brand and establish a base of loyal customer again,” it says.

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whqhdrbs
whqhdrbs

everybody knows it’s to do with political reason at least partially…Samsung used to have 30% market share in China not that long ago…first by Chinese gov. blocking google play store and make some of popular chinese apps not compatible with samsung and apple (apple’s sales dropped too) second, because of some kind of missiles…

preime101
preime101

The only reason why Apple is doing well in the Chinese market is because the brand is still considered a status symbol whilst Samsung & others are considered more mundane so people are more budget conscious. I a few years Apple will become so common place that they are no longer seen as a cool status symbol and their share will plummet.

Shenoysiddhant
Shenoysiddhant

Most of the Chinese phone’s charge way less money than what Samsung charges for its flagship while providing almost the same features and hardware and so it makes it easy to buy a Chinese phone and change it than buy such a costly phone and then realise that Samsung totally forgot about how much amount you payed for the phone and what services need to be provided right after 6 months of launch of the phone

o0MHJ0o
o0MHJ0o

If they focused marketing a couple of devices really well instead of releasing a hundred devices in the country, I am sure they would perform better. Hope this means they will give up their ridiculous conquest of the Chinese market and start treating European customers better – the people who actually buy their phones at the high prices.

Ogishi
Ogishi

Actually Samsung has been doing what you said, but that didn’t help. I agree with your second half – they should just focus on maintaining market share, especially in the high-end market, of Europe and Asia-pacific, where their estate is under the threat of Apple. Chinese market is huge indeed, but there’s no more room or profit for Samsung – even not more lucrative than a developed european country.