Samsung, Apple and many other foreign smartphone companies all have one unsuccessful quarter in the world’s most population market: China.
Samsung, like most non-Chinese phone makers, continues to lose market share in this country to the hands of Huawei, Oppo and Vivo. According to the result of latest research by Technology Market Research, sales of smartphones in Q1 of 2017 Samsung in China has decreased 60% when compared to last year. Specifically, in the last quarter, South Korean companies sold 3.5 million smartphones in the world’s most populous market, thereby accounting for 3.3% of the smartphone market in the country (down from 8.6% the same period last year).
Interior businesses have a big advantage because they own large and small retail outlets all over in China. Therefore, they have many more advantages when compared with foreign companies. Huawei led the Chinese smartphone market in Q1 with 19.7% market share, followed by Oppo with 17.5% and Vivo with 17.1%.
Xiaomi focuses on engaging announcements, online sales, and targeting large cities. Meanwhile, Oppo and Vivo focus on rural areas of the domestic market – where Chinese people are still unfamiliar with online shopping. Today, Oppo’s phones are offered at 240,000 local electronics stores across China.
Meanwhile, Xiaomi has only a few hundred stores or as same as Apple has only a few dozen stores in this market. In addition, Oppo and Vivo offer incentives to owners of their handset stores ($ 6 to $ 30 per product).
Jeon Byeong-seo, head of China Economy and Finance Research said that Samsung’s smartphones are more expensive, only available at large resellers and lack localized application services. He added Samsung needs to find a way to meet the needs of Chinese consumers. Not only Samsung but also Apple and other foreign companies need to pay attention to this issue.
Most recently in 2014, Samsung is the leading smartphone company in China with 20% market share, but currently dominating the world’s most populous market is not an easy task for foreign brands.