Samsung mobile phones are being abandoned by the Chinese market.
From the first quarter of 2017, Samsung's mobile phone market share in China has dropped to 3.1%, the second quarter fell to 2.7%, the third quarter 2.0%, at the end of 2017, the market share has been less than 1%.
On July 10th, foreign media reported that Samsung Electronics Vice President Li Zaijun recently said that he would reorganize the Samsung smartphone division, inject new vitality into it, and make important changes to the upcoming Galaxy Note 9.
'Reorganization', 'Change', can it save the Samsung mobile phone's decline in the Chinese market, and whether it can cope with the strong impact of domestic brands?
Also had unlimited scenery
Some people say that Samsung and Apple have set off the carnival era of smartphones.
It’s no exaggeration to say this in detail. In 2007, when Jobs showed the iPhone to everyone, the new era of mobile phones has been opened. The iPhone has brought the mobile phone from the functional machine era to the era of smart phones. It also operates with smooth iOS. The system and stylish design quickly led the development of the mobile phone industry. Immediately afterwards, Samsung quickly followed up with the Galaxy flagship series, and set up a scene of competition with Apple's doubles. The capital that competes with ios has also become the Android overlord in China's mobile phone industry.
In the era when the smartphone was just emerging, Samsung once occupied the first place in the Chinese mobile phone market with its industry-leading technology and product strategy. In 2013, it captured a market share of nearly 20%. For a long time, Samsung Has been controlling the Chinese mobile phone market, the sales of champions for several consecutive years have made domestic mobile phones have no power.
How can it be bleak this evening?
Said a thousand 10,000, once and only once.
In 2013, Samsung also occupied the top spot in China's mobile phone sales. In 2014, it was second in the reversal of Xiaomi. In 2015, it was successively Huawei, Apple, OPPO, VIVO surpassed, and fell out of the top five. As of the first quarter of 2018, The top five in the rankings have not seen the shadow of Samsung.
With the global smartphone market demand becoming saturated, coupled with the continuous launch of cost-effective products by Chinese mobile phone manufacturers, both Samsung and Apple have experienced market downturns. Samsung’s market share has fallen to less than 1% last year. In the year, the market share in China also began to decline. According to a report released by market research firm Canalys, Apple is currently ranked fifth in the Chinese market with a market share of approximately 8%.
Samsung’s recently released financial report for the second quarter of 2018 shows that the company’s operating profit reached 14.8 trillion won. The reporter observed that Samsung’s profit was only 2.3 trillion won, compared with 3.77 trillion won in the previous quarter. It fell 39%, and its share in the Chinese market is still less than 1%.
Such bleak data has been criticized by many data analysis agencies. According to a research report released by Strategy Analytics, Samsung's Galaxy S9 is the worst performing smartphone after the Galaxy S3, and Samsung's market share has dropped by 0.1%. The market share of Huawei and Xiaomi from China increased by 1.6% during this period. Therefore, some people in the industry believe that the pot should be backed by the Galaxy S9. After all, as the flagship of this year's flagship, the sales of the S9 are compared with the flagship mobile phones of previous years. Not a little bit, is it the 'culprit'?
But the 'pot' is really too big, s9 can not afford.
'out of favor' is gradual
Perhaps the phrase "Shengji will fail", Samsung mobile phone is gradually falling out of favor in the Chinese market, there are internal factors as well as external factors.
The quality problem is a hidden danger that cannot be avoided or indelible. The former flagship Samsung Galaxy Note7 has also given high hopes to the Chinese people, but the reality has given this expectation a heavy blow: the problem of mobile phone self-explosion has occurred. 'Explosion' has become a tear that Samsung can't tear. The label was once ridiculously extreme. What is even more deadly is that in the series of global recall policies of Samsung at that time, China alone was excluded, saying that the 'National Bank version exploded non-battery problem', and even pushed the mobile phone self-explosion problem to consumers. The repeated concealment of the truth has caused people to question the integrity of this world enterprise.
High price and low price are also a major cause of Samsung's loss. As we all know, the price of Samsung's flagship model has always been comparable to that of Apple. Compared with other brands of Android phones with the same configuration, Samsung's price is higher than 2 -3 times, this problem is not obvious before the domestic mobile phone has risen. However, after the high-priced low price of the Xiaomi mobile phone such as 'born for fever', the problem of Samsung is highlighted, so we can see from the data. 'In 2014, Samsung was relegated to the second place by Xiaomi.' In the case of insisting on high prices, the use rate of Samsung mobile phones in China is getting lower and lower, the phenomenon of stagnation appearing at high prices, the appearance of design is similar, and the lack of functional innovation is also Repeatedly mentioned.
Today, with the rise of domestic mobile phone brands such as Huawei, OPPO, vivo, and Xiaomi, they can rival or even surpass Samsung in terms of appearance, quality, performance, price, and sales, so they are used in the Chinese market where the habit is extremely localized. It’s a matter of course that mobile phones are favored by Chinese people.
The rise of domestic mobile phones has caused many foreign manufacturers to get into trouble in the Chinese market, and it is even difficult to have a foothold. Apple can still fight with the iOS system, but Samsung is not so lucky to break through in the cracks of Android all over the world. If you don't enter the top 5, you can only change to the Others series.
When it is no longer the king in all fields, the decline of Samsung is inevitable.
'Reconstruction' has been difficult to pull down
After Li was released from prison in February this year, he officially returned to Samsung in early May. He currently manages more than 60 subsidiaries of the Samsung Group. He said that Samsung should completely solve some of the company's existing management problems from the perspective of long-term development.
It is reported that Samsung’s prince Li Zaiyi reorganized Samsung’s mobile division at the end of June and established a new smartphone strategy. Previously, Samsung’s focus was on high-end flagship models, which will now become a two-track route – high-end intelligence. Mobile phones are still the focus, but will also strengthen the mid-range and entry-level smartphone business in order to improve the downturn in the smartphone business.
At the same time, Samsung appointed Park Gil-Jae as the global hardware director. He previously led the hardware design of the Samsung Galaxy A series. Within Samsung, there are two departments to develop products for the high-end, low-end market, and Samsung plans the future. Drive high-end products such as Galaxy S/Note to drive word of mouth and profit, drive sales and open the market with low-end and mid-range smartphones.
In fact, from the relevant data, Samsung mobile phones are still the sales champions in the international market, and they are still very attractive on a global scale. Li Zaiyu said that it is necessary to 'reform the Samsung smartphone division and inject new ones into it. Vitality, 'make important changes to the upcoming Galaxy Note 9'.
Whether 'reconstruction' and 'change' are the response to Chinese manufacturers, or the measures taken to save the Samsung mobile phone in the Chinese market, but the domestic mobile phone market, which is already saturated with supply and demand, Samsung Regardless of the so-called 'low price' strategy or departmental adjustment, it may be splashed, but it is necessary to talk about the return of life and even reoccupy the Chinese market.