Enter 2021.01.15 06:00
Samsung’s 20% market share collapses in 10 years
The Galaxy S21, which has a cost-performance ratio of 990,000 won in 3 years, will work in China?
Samsung Electronics (005930)On the 15th, 3 types of strategic smartphone’Galaxy S21′ were introduced one month earlier than the previous year, and the price also threw the number of matches at 99,000 won (based on the Galaxy S21 factory price). It has been three years since the flagship smartphone was released at a price of less than 1 million won.
It is evaluated that Samsung Electronics, which has upgraded smartphone specifications every year and raised prices, has taken the risk of lowering some of the specifications in an unusual way, and has bypassed the strategy of’cost-performance (price-performance)’. Samsung Electronics, the number one global smartphone market, is experiencing a sense of crisis.
Although the performance of each division was not disclosed, the stock price analyzes that a large part of this strong performance was due to the display business following the strong sales of Apple iPhone 12. As the iPhone launch was pushed back to the fourth quarter, the display (OLED, organic light-emitting diode), which was normally distributed in the third to fourth quarters, was sold concentrated during this period. Stock prices reported that the continued boom in LCD (liquid crystal display) also worked.
On the other hand, the industry estimates that Samsung Electronics’ smartphone division (IM) would have only increased its operating profit in the fourth quarter of around 2.4 trillion won. During this period, smartphone sales are expected to be around 60 million units. Samsung’s smartphone sales, which sold nearly 80 million units in the third quarter when Huawei sanctions began, plummeted as soon as Apple released a new iPhone in the fourth quarter.
In the meantime, market research institutes are also predicting that Samsung Electronics will not be able to hold a 20% market share in the global smartphone market in 10 years. Recently, Strategy Analytics (SA) predicted that Samsung Electronics will record 19.5% of the global smartphone market last year. Although it maintained the No. 1 market share, it has retreated back to Samsung, which has maintained a market share of more than 20% since 2012.
Apple (15.5%) and Xiaomi (11.8%) are quickly following Samsung Electronics (excluding Huawei, which is subject to US sanctions). When looking only at 5G (5th generation mobile communication) smartphones, Samsung Electronics has already lost 15.1% of the market share to Apple (19.2%).
SK Securities Director Kim Young-woo said, “In January, when the Apple frenzy was a bit subdued, just before Xiaomi released a smartphone worth 500,000 won that adopted Qualcomm’s Snapdragon 888, a high-end chip, Samsung has no choice but to quickly go to box office. Like the Galaxy S20 series, if you put up a high price, you have no choice but to lower the price point to an appropriate level as you fall behind Apple.
In the global smartphone market, fierce competition is underway for Huawei in China, which is subject to US sanctions.
However, it is pointed out that Samsung Electronics is not using the opportunity properly due to its insignificant position in China, which was the flagship market of Huawei’s flagship smartphones. In the market for Chinese smartphones over $800 (approximately 870,000 won), which Huawei was dividing with Apple, there is no Android camp to replace Huawei, but Samsung is not aware of this. According to the industry, Samsung’s market share of over $800 in China is over 3%. The 600-799 dollar market is said to be digging into Xiaomi.
An industry official said, “Xiaomi, which sells smartphones mainly online, is launching an offensive with more radical price discounts than Huawei, thanks to cost reduction.” “It is inevitable to supply parts in good condition and lower prices again.”
