Samsung Electronics Co., one of the world’s largest consumer electronics manufacturers, dropped from its number one spot in four key Southeast Asian smartphone markets. According to the market tracker Counterpoint Research Inc., Samsung lost its top ranking due to increased competition from Chinese brands.
During the year’s first quarter, Samsung failed to retain its number one position in four major smartphone markets. In particular, Samsung’s market shares dropped in Indonesia, the Philippines, Thailand, and Vietnam. Moreover, Samsung recorded a 19% market share in these four countries during the January to March period. This market share percentage decreased from the 22% Samsung obtained during the same time a year before.
Following the market share decrease, Counterpoint Research announced that Samsung slipped to the second spot. Counterpoint Research noted that the four nations’ combined smartphone market year-on-year growth reached 34%, equivalent to 27 million units. Among the four countries, Indonesia holds the most extensive market with a 41% year-on-year increase, followed by the Philippines, then Vietnam.
Intensifying Competition with Chinese Smartphone Makers
The South Korean tech giant lost its place to Guangdong Oppo Mobile Telecommunications Corp., a Chinese smartphone brand. Oppo secured the number one spot in the four countries with a 22% market share. During 2020’s first quarter, Oppo only acquired 21%. Similar to other Chinese smartphone companies, Oppo has continuously extended its scope to strategic international markets. As a result, it gained substantial market shares, becoming the world’s fourth-largest smartphone brand after Apple, Samsung, and Xiaomi.
Oppo’s fellow Chinese smartphone makers also took the leading market positions in the four Southeast Asian countries. Vivo Communication Technology Co. ranked third with a 16% market share. On the other hand, Xiaomi Corporation took fourth place with 13%, while Realme placed fourth with 11%. Additionally, Apple Inc., the world’s largest tech company, got hold of the sixth rank with a 6% market share.
Samsung’s Market Performance
Counterpoint Research also shared that Samsung achieved a 20% year-on-year increase in smartphone sales and shipments in the countries mentioned above. Even with this growth, Chinese smartphone manufacturers performed better thanks to their expanded market presence. Similarly, Samsung ranked second in the first quarter’s global smartphone market revenue. It logged a 17.5% revenue share, a decrease from last year’s 20.2%. Moreover, Samsung was the only company among the top five brands to record a decline in shares.
Over the past year, Samsung has been launching many smartphones in major smartphone markets. For instance, in January, Samsung introduced the Galaxy S21 flagship lineup, which supports lower prices than previous models. In March, the company also launched the mid-tier Galaxy A series, targeting customers in need of more low-cost smartphones. Samsung officials expect the releases to boost its market shares considerably.
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