With the rise of Chinese based device makers such as OnePlus, Xiaomi, OPPO, and Huawei (who is now the number one device maker in China), some of the bigger OEMs such as Samsung are starting to see a dip in their global market share. The decreased market share isn't a concern for Samsung yet, as the company has a significantly higher market share in Western countries—but the gap is closing quickly.
Last year, Samsung accounted for about 20.5 percent of all mobile shipments. That means just about 1 in 5 phones that were shipped across the globe were produced and sold by the Korean company. This percentage is expected to drop below 20 percent in 2018, and that's largely thanks to the expansion of the Chinese OEMs into western markets.
The report from Strategy Analytics, a market research company, states that Samsung's market share is expected to drop to around 19.2 percent, sandwiched between Apple's iPhone line and budget Chinese smartphones. It's been reported that each of the top smartphone manufacturers underneath Samsung will gain ground and ramp up the number of their units sold in 2018. That includes Apple, Huawei, Oppo, and Xiaomi which are all expected to raise their market share in the coming year.
And it's not only the budget Chinese phones catching up either. Chinese OEMs are also supplying flagship level experiences at lower costs, which in turn competes with Samsung and other manufacturers. As consumers learn of cheaper, but similarly good options, they may switch to other brands which threatens Samsung's market share as well.
With increases in market share across the board for competitors, it's not alarming but it certainly has the potential to be worrisome for Samsung in the future. There are reports that Huawei and Xiaomi are seeking to finally enter the United States as early as 2018, though we'll have to see how 2018 plays out and if the Korean tech giant's dominance may be in contention.
Via: Business Korea
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