The company has smartphones worth over $600 in the global market, Canalys statistics show SAMSUNG It currently ranks second with a 21 percent share, but the leader is Apple with a 63 percent share, and the Korean manufacturer follows Huawei from the bottom with an 8 percent share. Both competitors now rely on their own software platforms and processors and SAMSUNG It will be more difficult for it to survive because it is highly dependent on outsiders.

Sources interviewed by The Chosun Daily reach this conclusion. It is thought that Huawei’s Mate 70 series smartphones, introduced at the end of November, will use HiSilicon’s own 6nm processors. The move to the HarmonyOS Next operating system also marked Huawei’s move away from third-party software; This made it possible to reduce the price of new products by more than 20% compared to previous ones.

In contrast, Apple refrained from significantly increasing the prices of its products for three years, even though inflation wasn’t going anywhere even in the United States. SAMSUNG managed to maintain prices of basic models Galaxy S24 Compared to previous models, the company had to increase the price of the Galaxy S24 Ultra flagship model by 8.3% due to the fact that the components of this smartphone are not cheap and are purchased externally.

processors Samsung Exynos It has its own production in nature, but rumors are attributed to the company’s intention to equip the family Galaxy S25It will be released with Qualcomm processors early next year. The supplier increases prices, this affects Samsung’s costs, but the company cannot proportionately increase the price of its smartphones due to competition, so the Korean company’s profits suffer. In the third quarter, Samsung’s mobile division increased revenues by 1.7% year over year, but operating profit fell 14.5%.

According to Counterpoint Research, 85% of the operating profit in the smartphone market in the second quarter of this year went to Apple, while Samsung was content with only 12%. If in the first case the amount reached 1 billion dollars, in the second it turned out to be seven times less.

Switching to your own software platform not only reduces the burden on the company due to refusal to pay royalties, but also allows you to earn commissions from transactions in the company’s ecosystem. Google and Apple don’t mind taking 30% of every payment. Samsung’s efforts to develop the Tizen OS operating system first limited its scope to smart devices, then forced it to be replaced entirely by Google’s Android.

Experts also say it will be difficult to convince users to switch to Samsung’s Android alternative. In this sense, Huawei does not have to make a particular choice due to US sanctions and has a large loyal user base in China. In such cases, Samsung will have to focus on increasing the production of suitable products in chip production to reduce costs by reducing dependence on Qualcomm.