Samsung Phones Saw No Spillover Benefits from 'Huawei and LG Issues'

Global Market Share Drops from 22% to 20%... Apple and Chinese Companies Intensify Offensive

[Asia Economy Reporter Eunmo Koo] Samsung Electronics has not gained any windfall benefits from Huawei's struggles due to U.S. sanctions and LG Electronics' withdrawal from the mobile phone business in the global smartphone market. While Samsung Electronics is expected to maintain its position as the global market leader next year, it is anticipated to face challenges in defending its market share against Chinese manufacturers in the mid-to-low-end segment and Apple's offensive in the premium segment.

Market research firm Counterpoint Research revealed at an online seminar held on the 21st that the combined global smartphone market share of Huawei and LG Electronics, which was 12% in the third quarter of last year, shrank to 2% in the third quarter of this year. During the same period, Samsung Electronics' market share actually decreased from 22% to 20%.

The gaps left by Huawei's struggles and LG Electronics' withdrawal were filled by companies other than Samsung Electronics, depending on the region. In Huawei's home market of China, Apple filled the void. While Huawei's market share shrank from 27% in September last year to 8% in September this year, Apple more than doubled its share from 7% to 15%. Eunjeong Lee, a researcher at Counterpoint Research, explained, "Patriotic consumption in China has waned, and the prices of Apple's older models have dropped to levels affordable for Chinese consumers, leading to better-than-expected performance."

Samsung Electronics also failed to capture the vacant spots in Europe and the Americas. In Europe, Huawei's market share declined from 8% in July last year to 1% in July this year, while Xiaomi nearly doubled its presence from 14% to 27%, mainly with mid-to-low-end products. In North America, LG Electronics' main market, Motorola benefited the most. LG's market share shrank from 12% in September last year to 0% this September, while Motorola grew from 4% to 7% during the same period.

In the Korean market, Samsung Electronics fully absorbed LG Electronics' share. LG's domestic market share, which was 14% in the third quarter of last year, shrank to 2% in the third quarter of this year after the business withdrawal. Consumers who left LG Electronics moved directly to Samsung Electronics, causing Samsung's market share to rise significantly from 72% to 85% during the same period. Apple's market share decreased slightly from 13% to 12%.

Samsung Electronics is expected to maintain its precarious number one position next year. Counterpoint Research forecasts that the global smartphone market will grow by 7.2% compared to this year, reaching 1.492 billion units, with Samsung Electronics expected to record the highest sales volume of about 280 million units. This corresponds to a market share of 18-19%, which is a decline from 22% in the first quarter and 20% in the third quarter of this year.

Minsu Kang, a researcher at Counterpoint Research, said, "The global smartphone market competition is so fierce that it is difficult for any particular company to significantly increase its market share. In price-sensitive emerging markets, it does not take long to establish distribution channels, so Samsung's defensive strength is not very high."

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