Business

Samsung’s Chinese market share expected to drop below 2 percent in Q4

Samsung’s share of the Chinese smartphone market will drop below 2 percent in the fourth quarter, according to Strategy Analytics. The firm ranked ninth in the People’s Republic, with a 2 percent share, in the third quarter—but that’s expected to drop to 1.6 percent by the time January arrives.

Related: Samsung is having a tough time competing in China

Believe it or not, Samsung was once a dominant player in China. Its market share peaked at 20 percent back in 2015, but the recent rise of more affordable smartphones from local competitors, including Huawei, Oppo, Vivo and Xiaomi, has resulted in it losing a significant number of customers.

“It seems almost impossible for Samsung to upend the Chinese smartphone market reorganized by local firms with quality products and affordable prices,” said Lee Byung-tae, a professor at KAIST College of Business.

“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.”

Samsung could have a solution

Samsung has cut around 20,000 jobs in China amid weak sales, reports The Korea Herald. The firm appears to have a solution, however: it’s appointed a new head of its Chinese unit, who could very well return it to its former position in the market. Whether that will happen though is anyone’s guess.

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