Smartphone shipments from multiple brands around the world have fallen this year compared with the previous year. Samsung led the decline with 35m, rather than Huawei, which is likely to face an undersupply of chips, much to the surprise of the market. The big reason for Samsung’s dismal performance is that it has not relaxed its channels so far this year, but has tightened them around the world, squeezing their profits.
According to the analysis, Samsung’s approach is that Huawei, as its strong competitor, has pulled out of some of the market and wants to make more money from the channel.
But the problem is that although Huawei spits out some of the market, but Xiaomi, OPPO, vivo and other manufacturers strong entry, resulting in these manufacturers have become some channels more favored partners, Samsung missed huawei’s decline. Another reason is samsung’s heavy offline sales, which have largely stagnated during the outbreak.
In the second quarter of 2020, Samsung, which has been the world’s top smartphone market for eight consecutive years, fell to second place, according to a report by Canalys, a global technology market analysis and market consultancy. Samsung shipped 53.7 million smartphones in the quarter, down 30 percent from the second quarter of 2019.
The results also showed second-quarter revenue of 52.97 trillion won (about 320 billion yuan), down 5.63 percent from 56.13 trillion won a year earlier.
In terms of corporate development, second-quarter 2020 results show that Samsung’s operating profit is largely contributed by the chip division, accounting for about 66.63 percent of total profit. It can be seen that chip products in the overall downturn in the mobile phone market, has been Samsung’s revenue pillar. Although Huawei’s decline in production has given other handset makers more market share, some analysts believe the entire chip industry could face a large inventory backlog because of the company’s huge demand for chips, Reuters reported.
The poor performance of the mobile phone market, coupled with the outlook for pillar chip products, is not optimistic, Samsung’s future business will focus on which areas of attention.
On the industry side, global smartphone shipments plunged 23 percent in the second quarter of 2020, the biggest drop on record, as a result of the outbreak, according toCounterpoint Research. Overall, revenue in the smartphone industry fell 15% in the second quarter from a year earlier.
With the phone market in the doldrums, Samsung is not competitive in competing for Huawei’s vacant market share. As a result, Samsung has underperformed in all markets around the world, and the market as a whole is being reshuffled.
In Greater China, shipments fell 8 per cent year-on-year in the second quarter, with Huawei and Apple the two best-performing companies, accounting for 63 per cent of 5G and 56 per cent of Xiaomi. OPPO36%, VIVO35%, Samsung 25%, Samsung was thrown away a certain distance. There has been a certain decline in the European market as a whole. In terms of vendor share, Samsung’s 41 per cent last year fell to 30 per cent this year; Apple’s 14 per cent last year, up to 21 per cent this year; Xiaomi’s 10 per cent last year, up to 17 per cent this year; and the top three have seen structural changes. Samsung fell sharply (11 per cent), while Apple and Xiaomi rose sharply. In Asia-Pacific countries, the top competitors have changed a lot. Samsung came in first, but from last year to this year, samsung’s share fell from 24% to 21%. The competition is fierce, and Samsung is slowly losing its share of the market it already dominates.
But Samsung also faces some opportunities.
Counterpoint Research says the current competitive landscape in the mobile phone industry presents opportunities for other (non-Apple, Huawei) brands. Kang Min-soo, an analyst at the company, said: “This will be a good opportunity for Samsung to increase its smartphone market share, particularly in Europe, where it has been competing fiercely with Huawei for different price points.” “
Huawei’s volumes began to fall in the first three weeks of September, and even in some cases its domestic shipments fell by 10%. Huawei accounts for 50 per cent of the high-end market, and that 50 per cent is likely to be almost the same next year. Whoever gets more consumers in different zones is the winner.
The cause of the outbreak, high-end mobile phones in North America or Europe and other major high-end markets are s reduced. In addition to Apple and Huawei, other high-selling phones are low- and middle-end phones, which also reflects the overall consumer bias market demand, concentrated in the low-to-mid-end this piece.
And we’ve seen Samsung make new changes to its products, such as the M21, M31, A01Core, and phones that sell for $70 or $80 are already on the market. Taken together, Samsung is likely to make a good recovery in the third quarter.
A long-term tracking of the consumer electronics industry chain buyer analysts believe that this year, Xiaomi, OPPO and other mobile phone manufacturers have demonstrated a strong product change capability, and Huawei from a certain extent to further deepen its influence in the hearts of the people, so that overall, the “Chinese legion” has become a winner, Samsung’s market share is squeezed is not surprising.