Samsung smartphones, once leading the market in the United States, have seen a significant drop in market share, facing a crisis as Galaxy sales plummet in one of the world’s largest markets.
According to market research firm Counterpoint Research on Feb. 6, Samsung Electronics’ market share in the U.S. smartphone market, which had been maintained in the 20% range, fell to 18% in the last quarter. Samsung Electronics had secured a 34% market share in the U.S. smartphone market until the third quarter of 2021.
The primary reason for the decline is the growing preference for iPhones, a domestic product in Apple’s stronghold, the United States. Consequently, Samsung’s sales volume has taken a steep dive.
Conversely, iPhone sales in Korea have reached an all-time high. Samsung has always prioritized the U.S. market, annually unveiling new products at the Galaxy Unpacked event held in the United States.
Until 2020, Apple’s iPhone, which recorded similar market shares of 30%-40% to Samsung, achieved a 64% market share in the U.S. smartphone market in the last quarter, an increase of 7 percentage points compared to the same period last year.
Due to the decline in sales in the U.S., Samsung Electronics lost the global number one position (based on shipment volume) to Apple for the first time in 13 years. Market research firm IDC reported that last year, Apple shipped 234.6 million smartphones, securing a 20.1% market share and climbing to the top spot globally for the first time in 13 years, surpassing Samsung Electronics. Samsung shipped 226.6 million units last year, resulting in a 19.4% market share and falling to second place.
In the United States, iPhone users significantly outnumber others. The Financial Times reported that “the younger generation in the U.S. fears being ostracized among their peers if they don’t use an iPhone.” Over 80% of young Americans are using Apple iPhones.
Young Koreans also favor the iPhone, with sales in the country hitting a record high in the last quarter of last year.
Apple CEO Tim Cook made a rare mention of iPhone sales in Korea, stating, “In South Korea, the home base of our long-time rival Samsung Electronics, iPhone sales have reached an all-time high.”
Samsung Electronics, with the well-received Galaxy S24, is aiming for a comeback. However, given the high preference for iPhones among Americans, challenging Apple in its stronghold appears to be a daunting task.