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Samsung looks to hold off strong Chinese challenge

22/02/2016 by James Kavanagh


This week's Mobile World Congress in Barcelona sees a whole raft of new devices released by the big players in the market. The new product announcements in Spain have arguably never been as important, with Samsung recently announcing falling profits for the fifth straight quarter, as Chinese players eat into its market share.

Taking the China smartphone market as example, it's now Xiaomi, Huawei and Apple who lead the way at the top of the market, according to a report by market analysis firm IDC.

Back in 2013, it was Samsung, Lenovo and Coolpad who reigned supreme in China – with Samsung well ahead of its rivals, said Tay Xiaohan senior market analyst with IDC Asia/Pacific's Client Devices team.

"With operators reducing smartphone subsidy and given the volatility of consumers' brand preference in the market, the smartphone scene has changed significantly since then," he added.

Xiaohan explained that Xiaomi benefitted from entering the market at a time when the China smartphone market was still growing, allowing it to capture significant market share with its disruptive sales model. Huawei, on the other hand, ploughed money into research & development, strong products, branding and channel connections, which made for a prosperous 2015.

It's not only the China smartphone market where the Chinese players are making up ground. While Samsung still leads the worldwide smartphone market – according to the latest figures from IDC – Huawei and Xiaomi are bridging the gap, sitting third and four respectively, behind Apple.

It's for that reason that some are calling the new Samsung Galaxy S7, launched on Sunday in Barcelona, a "make or break" product for the South Korean giant. On the same day, Huawei announced the MateBook, its first Windows 10 tablet. Xiaomi, meanwhile, will introduced the world to its new Mi 5 smartphone.


Samsung, MWC, smartphone

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