Anti-China Offensive Benefits Samsung Electronics, Smiles in Q3

[Asia Economy Reporter Seulgina Jo] Samsung Electronics, which launched the new smartphone 'Galaxy Note20' in the second half of the year, is expected to smile brightly as it raises its global market share in the third quarter. This contrasts with the second quarter, which recorded a nearly 30% decline in sales due to the impact of the novel coronavirus infection (COVID-19). As a double-digit recovery in the global smartphone market is anticipated, it is predicted that Samsung Electronics, the competitor, will benefit from the intensified 'anti-China' offensive centered on the US and India.

According to market research firm TrendForce on the 26th, the global smartphone production volume in the third quarter is estimated to recover to around 335.2 million units, a 17.2% increase compared to the previous quarter. By company, Samsung Electronics' market share is expected to rise by 4.3 percentage points from the previous quarter to 23.5%. In contrast, China's Huawei, which held about 18%, is projected to drop to 14.0%. It appears that Samsung Electronics has fully taken over the share surrendered by Huawei. Following are Apple (13.3%), Xiaomi (11.5%), Oppo (11.8%), and Vivo (8.2%) in order of forecast.

Samsung Electronics is expected to gain a windfall from US sanctions targeting Chinese brands such as Huawei and anti-China sentiment in India triggered by border clashes.

In India, the world's second-largest smartphone market, anti-China sentiment has been rising since the bloody clash in the Himalayan border area in June. As the Indian state-owned telecom company canceled its contract with Huawei and the Indian government banned the use of TikTok and Weibo, industry insiders have predicted that Chinese smartphone manufacturers will be the next target.

Samsung Electronics also accelerated its market share expansion by launching four new mid-to-low-end phones in the Indian market shortly thereafter: Galaxy M01, M11, A31, and A21S. Analysts suggest that Chinese companies such as Xiaomi and Huawei, which had almost dominated the local market, will be directly hit, and Samsung Electronics will take their place.

Moreover, the offensive by the Donald Trump US administration targeting Huawei is expected to intensify further ahead of the US presidential election. This will inevitably become an obstacle to the activities of Huawei and other Chinese brands in the global smartphone market.

Compared to the second quarter, when the COVID-19 pandemic (global outbreak) fully took hold, restrictions in various countries have eased and economic stimulus policies have continued, leading to an improving overall smartphone market. Samsung Electronics is preparing to launch a foldable phone next month following the recent Galaxy Note20.

Through this, Samsung plans to make up for the underwhelming performance of the Galaxy S20. According to a report released on the same day by market research firm Gartner, Samsung Electronics was confirmed to have suffered the greatest impact among the top five global smartphone sellers in the second quarter. The second-quarter smartphone sales volume was 54.759 million units, down 27.1% year-on-year, marking the largest decline among the top five companies.

This content was produced with the assistance of AI translation services.