China replaces America as the biggest market for Samsung

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Last updated: August 20th, 2018 at 20:14 UTC+02:00

Samsung’s smartphone market share in China has dropped below 1% in the recent quarters. The company has been struggling to compete with the value-for-money Chinese brands which operate on wafer-thin margins. It has vowed to fight back in the world’s largest smartphone market, but none of its efforts have yielded any results so far.

Despite its abysmal performance in the smartphone market, the company as a whole continues to do exceptionally well in Asia’s largest economy – so well, in fact, China replaced the United States as the biggest market for Samsung Electronics in the first half of 2018.

Industry data reported in the Korea Herald says, out of the 83.9 trillion won ($74.6 billion) sales posted by Samsung Electronics in the first half of 2018, the Chinese market accounted for 27.4 trillion won or 32.7% of revenues, taking the top spot. America’s contribution to Samsung’s overall sales stood at 26%, down from the 31.8% share posted for the whole of 2016.

Samsung’s sales in China keep going up

Samsung’s sales in China kept going up gradually from the 18.5% in 2013 to 20.6% in 2014 to 28.3% in 2017. The company’s improved performance in China is primarily due to its semiconductors business. Strong demand for chips from the Chinese tech companies helped Samsung to grow its business in the country. The report also says recent protectionist policies by the US Govt have hampered Samsung’s sales in the US market.

Huawei, Apple, Verizon Wireless, Deutsche Telekom AG and Hong Kong’s Techtronics are Samsung’s top five buyers in 2018, whereas in 2017 it was Apple, Best Buy, Sprint, Verizon and Deutsche Telekom. Without divulging any details, Samsung said the top five firms accounted for 11% of its total sales in H1 2018.

Apple and Huawei are Samsung’s biggest competitors in the mobile and tablet market. The fact that they are also major customers for divisions within Samsung Electronics goes to show the complex and diversified nature of the company’s business operations.

Source General ChinaUnited States
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