2023-11-24 09:14:58
[아이뉴스24 장유미 기자] In China, known as the ‘Samsung phone graveyard’, Samsung Electronics is seeking a comeback with foldable smartphones. Even in a situation where there is a strong offensive by local smartphone companies, it is evaluated that it is still showing its ability as a ‘foldable phone powerhouse’.
At ‘Galaxy Unpacked’, Taemun Roh, head of Samsung Electronics’ MX division (president), is introducing the ‘Galaxy Z Flip 5 and Fold 5’. [사진=삼성전자]
According to Electronics Hub, an information technology (IT) research company, on the 24th, Samsung Electronics’ smartphone market share in China was only 1.78% during the first quarter of this year. This means that only 1 to 2 out of 100 Chinese people use Samsung phones. This is the lowest level in the world.
Samsung Electronics once had a market share of more than 20% in the Chinese smartphone market, but its market share fell significantly due to negative news such as the Galaxy Note 7 battery fire incident and THAAD retaliation. Added to this was the Chinese people’s patriotic consumption craze, and the market share was at 0% at one point. On the other hand, Apple maintained a market share of around 20% in China.
The results of a recent survey by market research firm Counterpoint Research are similar. Samsung Electronics’ share of the Chinese smartphone market in the third quarter of this year was around 1%.
However, if you narrow it down to the foldable smartphone market, the situation changes. Samsung Electronics ranked second in the Chinese foldable smartphone market in the third quarter of this year, recording a 21% share. However, it is unfortunate that it fell by 2 percentage points compared to the same period last year.
First place was taken by Huawei with a 34% market share. It fell by 15% points compared to the same period last year. China’s Honor ranked third with a 16% market share thanks to strong sales of ‘Honor Magic V2’. Oppo also ranked 4th with a market share of 11%, up 6 percentage points from last year. Vivo ranked 5th, securing a 9% market share. Xiaomi, which ranked 3rd last year, fell behind in 6th place with its market share falling by 2 percentage points to 8%.
The fact that Chinese consumers’ interest in foldable phones is gradually increasing is a positive factor for Samsung Electronics. In the third quarter of this year, the Chinese foldable market grew by 105% compared to the same period last year. This is because Chinese manufacturers such as Huawei, Honor, Oppo, Vivo, and Xiaomi have strengthened their foldable sales lineup and demand for foldable phones has increased.
The prospect that demand will continue to increase is also good news. It was found that 64% of Chinese consumers who currently use smartphones worth more than $400 (approximately 520,000 won) are considering a foldable phone as their next smartphone. It was found that 20% have already decided to switch to a foldable phone, and 44% are concerned regarding the weight. It is predicted that the Chinese foldable phone market will continue to grow in double digits this year.
An industry insider said, “Chinese OEMs such as Honor and Oppo are increasing their foldable phone shipments to grow the premium segment, further strengthening their competitiveness in the foldable phone market not only in China but around the world.” He added, “Samsung Electronics is increasing its competitiveness in the foldable phone market in China and around the world.” “Although we maintained second place in market share, the catch-up from local OEM companies is not easy,” he said.
Share trend by brand in the Chinese foldable phone market in the third quarter of 2022-2023. [사진=카운터포인트리서치]
In this atmosphere, Samsung Electronics is accelerating its efforts to strengthen its business in China, led by Samsung Electronics Vice Chairman Han Jong-hee and Samsung Electronics MX Division President Roh Tae-moon. In particular, Vice Chairman Han visited Beijing, China to inspect local business ahead of the large-scale online shopping event ‘Singles’ Day’ held on the 11th. Previously, Samsung Electronics established a new China Business Innovation Team under Vice Chairman Han in 2021.
An industry official said, “Samsung Electronics is ahead in technology, but due to its inferiority in price competitiveness, it is being pushed out by local Chinese companies and has only a single-digit market share in major product categories such as TVs, home appliances, and smartphones.” “This is the result of a sense of crisis that the decline in Samsung Electronics’ position in the global market is leading to worsening overall performance.”
“Even in the foldable screen market, where Samsung is dominating, Chinese companies are increasingly keeping Samsung in check,” he said. “The Chinese market has been gradually decreasing in market size since 2016, but annual consumption of smartphones is still around 300 million units. “As it is one of the markets that cannot be given up, attention will be paid to what strategies Samsung Electronics, a leader in foldable phones, will come up with in the future to expand its market share,” he added.
/Reporter Jang Yu-mi([email protected])
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