Korean Media: Why Has Samsung Not Withdrawn from China Despite Just 0.1% Market Share?
On September 9, South Korean media outlet Herald Economy published an article stating that according to data from market research firm IDC, in the second quarter of this year, Samsung Electronics' share in China's smartphone market was only 0.1%, a decline of 0.3 percentage points compared to the same period last year. Huawei led the market with a 22.6% share, Apple ranked second with 18.1%, while domestic Chinese brands OPPO and vivo each held 16.0%.
With the top six companies accounting for approximately 96% of the Chinese market, Samsung Electronics' market share continues to steadily decline. Recently, there have been reports indicating that Samsung Electronics is scaling back its smartphone sales network in China.
Media reports suggest that Samsung Electronics is gradually closing smartphone stores with monthly sales below RMB 300,000, including outlets in multiple cities such as Shenzhen, Fuzhou, Zhengzhou, Xi'an, and Kunming, which have already been shut down.
Samsung Electronics has not yet issued an official statement regarding these reports. The company has also never formally mentioned the figure of "monthly sales below RMB 300,000."
However, in May this year, Samsung Electronics officially announced a suspension of sales of home appliances—including televisions and monitors—in mainland China. The suspended products include televisions, monitors, large commercial displays, as well as air conditioners, refrigerators, washing machines, dryers, vacuum cleaners, and air purifiers.
At the time, Samsung Electronics clearly stated it would not exit the Chinese smartphone business, emphasizing that "smartphone products will continue normal sales."
Despite its market share dropping to just 0.1%, Samsung continues to advertise and maintain operations in China’s smartphone market—not merely due to poor current sales performance.
First, China is one of the world’s largest premium smartphone markets. Industry experts predict that even with such a low market share, given the sheer scale of the Chinese market, securing even a small number of high-end customers could generate substantial revenue for Samsung Electronics.
Some analysts believe Samsung places greater emphasis on maintaining brand image rather than competing for market share. This is because, even with low sales volume, sustained advertising and product launches can help keep the perception alive that "Samsung remains a global premium brand entering the Chinese market."
Moreover, Samsung Electronics’ strategy in the Chinese market has evolved. After divesting its television and home appliance businesses in China, operational costs have decreased significantly, and the business structure has been reorganized to focus more intensely on high-end smartphones. Under this new model, the company can sustain operations even with limited sales volumes.
Original source: toutiao.com/article/1875839733619721/
Disclaimer: The views expressed in this article are solely those of the author.