Business

2020 might be a decisive year for Samsung’s 5G network business

Samsung was the second-largest 5G network equipment in Q3 2019 following Huawei. Analysts cited by Yonhap News Agency believe that the South Korean tech giant has an opportunity to greatly increase its presence in the 5G space next year, as more telecommunication service providers prepare to make major investments in their infrastructure.

According to the online publication citing IHS Markit, Samsung had managed to control 11% of the global 5G market this year, up from 5% in 2018. The company is now expected to boost its 5G market share at over 20% next year, as service providers brace themselves to welcome aboard an additional ~70 million 5G subscribers in 2020.

The threat of Huawei is still looming

The recent report reiterates the fact that Samsung is very likely to improve its presence in the 5G segment partly because of the US-China trade war, which has reduced Huawei’s potential clientele for 5G network equipment.

However, it was only last week when market watchers were suspecting that Samsung could very well lose ground to Huawei in the 5G race over the next few years, as the Chinese tech giant’s 5G solutions are priced more competitively and can even be technically superior. It may be that Samsung will manage to boost its 5G influence next year before its upward trajectory will flatten out in consequent years.

With all said and done, it sounds a bit like the top spot in the global 5G network equipment market will be contested by both Samsung and Huawei, and only time will tell which one of the two tech giants will come out on top. Samsung is bound to increase its market share next year, but its success also appears to be directly influenced by Huawei’s hurdles.

Thankfully for Samsung, the company already has a strong foothold in the 5G market in Japan, South Korea, and the US where it provides 5G network equipment to AT&T and Sprint. As service providers in these countries expand upon their infrastructure, Samsung’s market share will surely improve, perhaps even to the point where it will overtake Huawei.

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