Samsung has adapted to new times with its smartphone portfolio Galaxy, which started its journey with Android in 2009. best selling manufacturers worldwide. They are also starting trends: Flip and Fold folding products were pioneers, but recently they have lost their position as the best-selling manufacturer of folding products.

It stumbled against Apple, its toughest rival in smartphones overall. Of course, according to Counterpoint statistics, it did not take long for it to regain its throne as the manufacturer that placed the most mobile phones worldwide. Its excellent registered benefits leave no doubt: it is the most popular in the Android ecosystem. Well, all over the world A very interesting and strange exception: China.

From leader to bottom: all in one decade

In 2014, exactly ten years ago, the Korean manufacturer was the undisputed leader on Chinese soil. At that time, it launched a strong advertising campaign that featured itself and its entire fleet of mobile phones, especially at a time when some local manufacturers had not yet begun to emerge.

Ten years later… What are your numbers? They spent two months with some pretty ridiculous quotas after the launch of their last flagship, the Galaxy S24: 0.8% in January 2024 and 0.7% in FebruaryA very low representation in the vast fleet of Android phones sold in China.

Vivo’s sales were 18%, Honor’s 16% and Xiaomi’s 15%It relegates Samsung to the bottom of the list. What are the reasons behind this strange situation? There are two events that determine the course of the Korean manufacturer in this country:

• Controversy over the deployment of THAAD missile defense system in 2016: China disagreed with the United States and Korea on establishing military defenses in North Gyeongsang. That’s when the smear campaign began.
• Tension between the USA and China: Since 2020, the two countries have been in a technological-commercial war. The South Koreans’ union with American technology has once again made them worse.
• Samsung uses Android and therefore Google services: Moreover, Samsung’s reliance on Mountain View’s Android has alienated it from the preferences of Chinese users.
• Other factors: Lack of interest in setting up industry in Asian country, not fighting for 5G market in China, very popular problems like Galaxy Note 7 and its battery, etc.

Image: Samsung

All these reasons caused Samsung’s decline between 2013 and 2019. Developing producers who do not remain silent The Korean company observed the situation.

Samsung’s rivals in China: each has its own approach to society

When we talk about local Chinese manufacturers we are talking about brands that are currently quite popular, see. Xiaomi, Oppo, Vivo or Huawei itself. At that time, the beginning of the smartphone era was not very peaceful for these technology giants.

Xiaomi, on the other hand, moved away from traditional physical stores and focused on online sales. Tight and attractive prices were a castle in which a manufacturer with a certain history built itself. Cheap smartphones for rural areas and new cities: The cheapest apps to use WeChatIt is very important for Chinese users.

Oppo and Vivo, both from the BBK consortium, have opted for a different segment of the market: A vertical strategy to position yourself and create your own identity. They were especially successful in the western part, where they were almost irreplaceable. They have also developed a medium-sized distribution network, as well as a reserved retail presence in small stores.

Finally, others such as Huawei (and we can also include Apple) have built their target audience in cities classified as tier I and II (Beijing, Shanghai, Canton, Shenzhen and others). Due to big stores and less economical prices, ecosystem and in the quality of their products.

They managed to establish themselves by sinking a Samsung that failed to capitalize on any of the three strategies pursued by the rest, each dedicated to one segment of Chinese society (and market). They neither had a horizontal online presence to attract the Chinese market nor were they able to generate net worth. Finally, premium segment They went too far when they missed opportunities.

Chinese consumers have a weapon to consider: pioneering new technologies. However, the lack of ecosystem and applications for the Chinese public put an end to the situation. In short: Samsung lost China for different reasons, but the main reason was that the corporate culture could not meet the needs of different consumers.

In India, Samsung’s situation is different: They have managed to distance themselves from their competitors.

Its clear focus on high-end technology without neglecting cheaper segments has not gained traction in China. But let’s not consider him dead just yet: Strong presence in Indiaa market that some say is similar to the Chinese market.

Of course, he should not be neglected because there are already some rivals behind him who are watching him very closely. There, they managed to react as soon as they saw the danger: They are new Nokias nowIt maintains premium phones but also offers solutions for tighter budgets.

via | Innovation Copilots, DIGITIMES Asia, KoreaTimes

Cover image | Composition of photographs by Alejandro Later and Max Whitehead on Unsplash (2), Global Panorama on Flickr

Xataka on Android | One UI 6.1 is coming to your Samsung Galaxy. How to find out if the update brings Galaxy AI artificial intelligence features?