Yet Struggles in China Market
Samsung Electronics regained the top spot in the global smartphone market in the third quarter of 2020. Although the Korean smartphone giant did well in most regions, including the Indian market, its slump in the Chinese market continued.
According to Market research company IDC, Samsung Electronics accounted for 22.7 percent of the global smartphone market in the third quarter of 2020 by shipping 80.4 million units, up 2.9 percent from a year earlier. Huawei fell to second place with shipments plunging 22 percent during the same period. Huawei's market share stood at 14.7 percent, down 5.3 percentage points from the previous quarter. Xiaomi's shipments increased 42 percent, boosting its market share to 13.1 percent, ahead of Apple's 11.8 percent.
An earlier survey released by Counterpoint Research estimated Samsung’s global market share at 22 percent in the third quarter. Its shipments rose 2 percent on year to 79.8 million units and 47 percent on quarter. It was followed by Huawei (14 percent), Xiaomi (13 percent), Apple (11 percent), Oppo (8 percent), and Vivo (8 percent). LG Electronics held a 2 percent share.
Samsung Electronics could recapture the top spot in the third quarter largely thanks to the fall of Huawei and its rise in the Indian market. According to Counterpoint Research, Samsung Electronics ranked first in the Indian smartphone market in the third quarter of 2020 with a 24 percent market share, beating Xiaomi (23 percent).
Global Smartphone Market Shares in Q3 of 2020 (Source: Counterpoint Research)
However, the Chinese market is still a tough market for Samsung. Huawei accounted for 36.3 percent of the Chinese smartphone market in the third quarter, Sino Research said. Although Huawei’s share dropped from 40.2 percent in the first half of 2020, it maintained its No. 1 ranking. The runner-up is Vivo, who took up 17.5 percent of the total. Oppo (16 percent) came in third, followed by Xiaomi (14.8 percent). Apple placed firth as the only foreign brand with a double-digit market share (10.2 percent). On the other hand, Samsung Electronics' share of the Chinese smartphone market in the third quarter of 2020 is only 1.2 percent, down from 1.5 percent at the end of 2019.
Samsung’s slump in China can also adversely affect its global market share in the future. According to Strategy Analytics, 5G smartphone shipments are expected to reach 635 million units in 2021, accounting for 37 percent of total smartphone sales. It is more than twice 15.4 percent in 2020.
In particular, nearly half of the world's 5G smartphones are expected to be sold in China. Overseas market research companies predict that the proportion of 5G phones sold in China will increase to 70 percent by the end of 2020. Samsung's position in North America, Europe, and Southeast Asia is threatened by Apple's launch of the first 5G iPhone, the iPhone 12, and Chinese brands such as Xiaomi and Vivo, Oppo and Realmi. Samsung's global share will inevitably fall if the company continues to suffer a slump in the Chinese market.