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Samsung Electronics Takes First Place in Smartphone Market Share in Middle Eastern Europe
Benefiting from Sanctions on Huawei
Samsung Electronics Takes First Place in Smartphone Market Share in Middle Eastern Europe
  • By Michael Herh
  • September 20, 2019, 10:43
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The Galaxy A50 smartphones from Samsung Electronics

Benefiting from sanctions on Huawei, Samsung Electronics ranked first in the Central and Eastern Europe (CEE) smartphone market in the second quarter.

Samsung took up 40 percent of the CEE smartphone market in the second quarter of this year, Counterpoint Research said on Sept. 19. While the size of the entire CEE smartphone market has not changed much, Samsung's sales grew 21 percent on year and 8 percent on quarter.

Samsung's growth is attributable to Huawei's slump caused by U.S. sanctions. Huawei's market share reached only 20 percent, about half of Samsung’s. Samsung's new Galaxy A-series absorbed demand for Huawei's products while receiving good responses from consumers.

"The A-series has become the biggest contributor to Samsung’s market share growth, accounting for 70 percent of Samsung's total sales," said Peter Richardson, an analyst at Counterpoint.

Although Samsung is taking the lead in Eastern Europe, it is facing fierce competition from Chinese brands such as Huawei, Oppo, Vivo, Xiaomi and Realme. As smartphone sales in the Chinese market are stagnating, Chinese brands are actively looking for new markets.

Despite Huawei’s fall, the combined share of the Chinese brands in the CEE market grew 11 percent on year and 5 percent on quarter. In particular, Xiaomi came in third, outclassing Apple by posting a year-on-year increase of 33 percent and a quarter-on-quarter increase of 69 percent. Xiaomi is also regarded as another smartphone maker that benefited from a drop in Huawei sales.

Due to a strong performance of global and Chinese smartphone brands, smartphone brands based in the CEE region suffered a year-on-year decline of 74 percent. Moreover, they are facing fierce competition with global brands such as Nokia HMD and Philips in feature phones, their main products.