Samsung’s latest quarterly results paint a dire picture for the firm’s operations in China, as the company has lost more than half of its market share to local companies such as Huawei.
It would seem that Apple isn’t the only international mobile brand struggling to cultivate a foothold in China; Samsung’s mobile business has taken a tumble and declined by 60% year on year – diminishing its market share from 8.6% in 2016 to 3.3% in 2017.
The news is evidently frustrating for Samsung, who’ve committed special effort in developing products specifically for the Chinese market, such as the Galaxy C9. However, it would seem that the jury has ruled in favour of locally-produced handsets.
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Chinese electronics firm Huawei – a well-known name to South Africans – continues to dominate the Chinese market with a 19.7% market share, and is followed closely by another local brand, Oppo, which bears a 17.5% share of the market.
On the subject, Jeon Byeong-Seo – head of China Economy and Finance Research – offered that “Samsung’s smartphones are more expensive, available only at offline agents and lack localized app services. The company needs to figure out more how to satisfy Chinese consumers’ needs”.
Samsung has lost ground thanks to two key measures; firstly, the affordability of Chinese-made handsets continue to impress abroad and in their local market, and the rise in popularity of brick-and-mortar stores made popular by brands such as Oppo.
The news comes after it was revealed last year that Chinese marques were experiencing explosive sales growth not just locally, but further abroad – and introductions between the international stage and China continue to flourish thanks to efforts such as Huawei’s US-bound Honor range, and Xiaomi’s stylistic efforts exemplified by smartphones such as the Mi Mix.
Read: Didi Chuxing, the ride-hailing service Apple invested in, acquires Uber China
What are your thoughts? Would you be prepared to splurge on a Chinese handset? Be sure to let us know your opinion in the comments below!
Follow Bryan Smith on Twitter: @bryansmithSA
