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Close factories one after another, lay off workers on a large scale, Samsung mobile fails to defend China

via:雷锋网     time:2019/11/5 21:50:21     readed:100

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You know, in China, intelligenceMobile phoneWhen the time comes,SamsungOnce dominated China's smartphone market. But the good times are not long. With the rise of domestic manufacturers and Samsung's own mistakes, Samsung's market share in China is declining steadily. Now, only about 1% of the market share is left, which is really regrettable.

China's smartphone market

In fact, Samsung entered the Chinese market in 2002, but at that time, Nokia was the largest mobile phone market in China, and Samsung was in the second place. Since about 2009, China's mobile phone market has gradually shifted from function machine to smart machine. During the transformation, Samsung was not only not eliminated, but also ushered in a highlight moment in China's mobile phone market.

In 2012, Samsung launched the galaxy mobile phone. With this model, Samsung set off a wave of "galaxy" in the global market, and this wave also promoted Samsung's further development in China. According to public information, Samsung became the new leader of China's smartphone market in 2012 with nearly 30% market share.

In the high-end market, Samsung has the ability toIPhoneThe high-end galaxy. In the middle and low-end market, Samsung has also launched a number of mobile phones with a price below 2000 yuan, which are welcomed by Chinese consumers. In 2013, Samsung remained at the top of the smartphone market in China, despite a decline in its market share.

It is worth mentioning that at that timeOPPO,VivoSeveral of the major domestic mobile phone brands in China are still living by charging mobile phones from operators. They are not at the same level as Samsung at all, let alone compete with Samsung in market share.

For anything, however, once it reaches the summit, there are only two ways to go: to hold the first place, or to fall from the altar. From the perspective of Samsung's development, Samsung's path belongs to the latter.

Market share squeezed by domestic manufacturers

2014 is a year of great changes in China's smartphone market. With the reduction of 4G commercial and hardware costs, China's smart phone industry ushers in a "golden age" of development. At this time, domestic manufacturers are rising one after another, squeezing Samsung's market share in China. It was in this year that Samsung's dominant position in China's smartphone market wasmilletInstead, the market share dropped to 12.1%. The reason why Samsung will be squeezed market share is not only the strong rise of domestic manufacturers, but also the operation of Samsung itself.

With the arrival of 4G era, the channel of operators has been adjusted to a certain extent, and the proportion of e-commerce and open channel has increased. Due to the serious homogenization of smart phone products at that time, the "price war" between mobile phone manufacturers has become increasingly fierce. WhereasAppleWe always use the exclusive IOS system, and only focus on the high-end machine field. Even in the "price war", we can maintain market share with unique ecology and excellent quality.

In the Android ecosystem, SamsungHUAWEIXiaomi and other mobile phone manufacturers are among them. Compared with the domestic mobile phone manufacturers that customize in-depth Android customization systems such as MIUI and flyme for domestic consumers, Samsung, which has not carried out localization for a long time, is not so pleasant.

In addition, for consumers, Samsung's "negative optimization" is also one of the reasons for its criticism. According to relevant media reports, Samsung's mobile phone products will become stuck with the extension of use time, and the decline in fluency will become a negative label of Samsung's products.

In addition to product problems, the price factor is also one of the reasons for Samsung's loss of competitiveness. As mentioned earlier, due to the aggravation of homogenization of mobile phone products, the position of price in competitiveness has also been improved. Unlike Samsung's flagship pricing of several thousand yuan, Xiaomi's flagship mobile phone priced at 1999 yuan is more popular (1999 yuan is the price of Xiaomi 4 released in 2014), while the lower pricedRed riceMobile phone is to play to the extreme cost performance.

As a result, under the attack of domestic mobile phones and Samsung's own "do not want to forge ahead" in the Chinese market, it is no doubt that Samsung's market share has been plundered by the rising domestic market.

By 2015, the third and fourth tier cities have ushered in the trend of machine change. Oppo and vivo, which have been cultivated in the offline channels in the low tier cities, have gradually emerged and joined the camp of competing for the market share of China's smart phones. It can be seen from the relevant data that Samsung's market share in China has been largely lost, and the shipment volume in China has been far away from Xiaomi, Huawei and other mobile phone manufacturers, even after oppo and vivo.

Note 7 negative effects of events

After that, Samsung's shipment volume in the Chinese market has not been improved, but Samsung is still working hard in the Chinese market. However, in the "Note7 battery explosion" in 2016, Samsung's differentiated handling method made it lose the trust of consumers in the Chinese market. Since then, it has become more difficult for Samsung to rise again in the Chinese market.

On September 2, 2016, Samsung Galaxy Note7 was listed in mainland China. On the same day, Samsung Electronics made a statement in South Korea about the "Galaxy note 7 battery explosion". Samsung said it had decided to recall Note7 phones in 10 countries such as the United States, South Korea and Hong Kong, Macao and Taiwan regions of China in view of the frequent exposure of the potential safety risks of the batteries, while mainland China was not within the recall range.

In response to the dissatisfaction of Chinese consumers caused by this differential treatment, Samsung said that the galaxy note 7 of the Bank of China adopted different battery suppliers, so it was not included in the scope of this replacement. Nevertheless, this kind of public relations way of Samsung still leaves a bad impression on Chinese consumers.

Relevant data show that Samsung's market share in China is around 3% from 2017q1 to 2017q3. Since Q4, Samsung's market share is only 1%, and it has continued to this day.

In recent years, rumors of Samsung's exit from the Chinese market have occurred, but Samsung has denied this. And in mid August 2018, DJ Koh, President of Samsung mobile, also made it clear that he would not give up the Chinese market. But in terms of Samsung's measures, Samsung is struggling in the Chinese market.

It is reported that Samsung has three factories in China, which are located in Tianjin, Shenzhen and Huizhou. In 2018, factories in Shenzhen and Tianjin were closed one after another, while the remaining Huizhou factories were also closed in October this year.

In addition to closing the plant, Samsung recently announced that it would cut 1 / 3 of its workforce. In response, Samsung said:

In view of the uncertainty of the internal and external business environment and the fierce competition in the market environment, Samsung Electronics has adjusted the relevant businesses to promote the rapid growth in China's 5g market.

In line with the development needs of 5g era, Samsung Electronics has adjusted its product line with 5g products as the core, strengthened strategic cooperation with leading domestic retail channel providers, and further strengthened its mobile business in China.

As a part of normal business activities, this adjustment has improved the competitiveness of Samsung Electronics in the Chinese market, and also provided necessary impetus for the long-term development of enterprises. In the 5g era, Samsung Electronics will continue to provide better products and services for Chinese consumers.

It is easy to see from Samsung's statement that Samsung indirectly acknowledged the authenticity of "downsizing" and once again demonstrated its determination to stay in the Chinese market. However, Samsung's path in China is becoming more and more difficult in terms of closing factories and slashing staff.


Since China entered the era of smart phones, Samsung's development in China has experienced a roller coaster like transformation, gradually climbing and falling rapidly. Samsung seized the opportunity of the transformation from functional machine to intelligent machine, but it was seized market share by domestic manufacturers at the arrival of 4G era in China. After all, the transformation of the times will bring about some winners, and will also eliminate a number of laggards.

Now, as China enters the 5g era, can Samsung take advantage of this to get more share in the Chinese market?

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