Samsung has maintained its leading position in the global mobile market for several consecutive years. Despite this, the company's position is no longer as strong as in previous years, and in addition to lower-than-expected sales of some of the company's handsets, competitors such as Xiaomi have become a significant threat to Samsung.
According to reports, handset sales The Galaxy S21 series did not live up to Samsung's expectations at all, and given the lack of a Galaxy Note 21, the company has relied heavily on the success of the Galaxy Z Fold 3 and Galaxy Z Flip 3 clamshell phones.
Increased competition from Chinese manufacturers
In June 2021, Xiaomi surpassed Samsung for the first time in the mobile market and won the market title. Xiaomi market share reached 17.1 percent this month, followed by Samsung and Apple with 15.7 percent and 14.3 percent market share.
Of course, it should be noted that Xiaomi has only been able to overtake Samsung this month, and the Korean company still ranks first in terms of quarterly sales figures. . But overall, Chinese companies such as Vivo, Oppo, Xiaomi, and Riley are steadily increasing their market share in key markets such as China, India, and Europe.
Note that in the second quarter of 2021, OnePlus grew 170 percent year-on-year, with Riley up 135 percent, Xiaomi up 98 percent, Oppo up 50 percent and Vivo up 44 percent. Meanwhile, sales of Samsung phones have been only 7% higher than last year.
Low sales of Galaxy series phones S21 h2>
According to published reports, Samsung has only 13 in 6 months. Has sold 5 million units of the Galaxy S21 series. In the same period, 17 million S20 series phones and 25.5 million S10 series phones were launched.
So, although Samsung is the number one mobile phone market, on the other hand, Let's say that the market share of the company's handsets has increased from 22% in the first quarter of 2021 to 18% in the second quarter of 2021. In the same period, Xiaomi's market share has risen from 14 to 16 percent.
As you can see, Samsung's situation is not ideal. Meanwhile, Samsung continues to make attractive, high-quality handsets, and the flagship S21 has a lot to say about its competitors. So why is the company's position in jeopardy?
Supply Chain Restrictions
One of the reasons for the failure of the S21 series is due to Samsung supply chain limitations. Most of Samsung phones are made in Vietnam, but in recent months, the corona crisis has hampered the production of these phones and this has disrupted their production and distribution.
For this reason, fewer Samsung phones They have been marketed. But this is just one of the reasons why sales are lower than expected. Other reasons include the global shortage of chips, low-cost, low-cost handsets, and declining brand loyalty.
Samsung phone users are no longer as loyal to the brand as they used to be. In addition, the Galaxy S series is no longer as unique as it used to be, as some mid-range phones offer a number of the features of these flagship phones.
Introducing The Galaxy Z Fold 3 and Z Flip 3 hope to regain some of their lost market share. Although currently only a small number of users are looking to buy clamshell phones, the number of these handsets will soon increase significantly. That's why sooner or later the price of these phones will go down.
Samsung now has almost all of this market, and this superiority allows the company to be more visible in the clamshell market. We'll have to see if clamshells become ubiquitous in the near future, and if so, Samsung's situation will improve.
- Galaxy Z Flip 3 review; Samsung's first affordable clamshell phone
Source: Make Use Of