Samsung Is Losing the Chinese Market for the Third Year.

Apple made the news when its revenue dropped for the first time in so many years. There were speculations that the company had probably reached its zenith — like Blackberry, Nokia and the rest of the dying brands. Samsun...

Apple made the news when its revenue dropped for the first time in so many years. There were speculations that the company had probably reached its zenith — like Blackberry, Nokia and the rest of the dying brands. Samsung remains the world’s largest smartphone vendor, a position it has maintained for quite a long time.

However, Samsung too has issues to deal with in China. China is the world’s largest smartphone market, but for the third year, Samsung is losing its market share due to declining sales in this major mobile market. Samsung’s annual sustainability report shows that the percentage of the company’s sales was 18% in 2013, 16% in 2014 and 15% in 2015. The revenue from China went down from US$34.9 billion in 2013 to US$28.7 billion in 2014, and US$27 billion in 2015.

Tight competition from Chinese brands

The rise of brands like Huawei and Xiaomi has been a major headache to Samsung. Huawei looks like the next brand to take Samsung’s place, and other companies like Vernee and Oppo have eaten deep into Samsung’s market share in China.

Again, homegrown brands offer what Samsung might not be able to give buyers — dead cheap devices with above-average specifications.

Although this hasn’t reflected greatly in Samsung’s global sales, it’s only a matter of time before the Chinese market is completely lost. Unless the Samsung re-strategizes, the current 5th position it currently holds in China will shift further down.