Shift in China's Phone Industry Market Share
On October 2nd, 2019, Samsung officially announced that they have shut down their last phone production manufacture in China due to economic slowdown. This came after Samsung cut production at one factory and suspended another factory in China. Samsung’s market share in China has decreased to 1 percent in the first quarter from about 13 percent in mid-2013. The cause of the shrank in market share is because many Chinese customers either purchase high-end smartphones from Huawei or Apple or low-priced smartphones from domestic brands.
Samsung is planning on relocating production equipment to other global manufacturing sites, depending on their global production strategy based on market needs.
While Samsung’s market share has been shrinking in China, Huawei continues to grow its market share and has taken over Apple’s market share. Huawei’s market share has reached its highest yet at 17 percent during the first quarter. It is predicted that Huawei will continue to grow at the same pace by the end of 2019. Huawei is doing so well in the Chinese market because it is a Chinese high-ended brand and because it is coming out with new products rather than refining old phones like Apple.
Huawei has surpassed Samsung and Apple in the Chinese market and it may not take longe to pass Samsung in the Asia market.
To learn more about theses events, check out the following links: https://www.channelnewsasia.com/news/business/samsung-ends-smarphone-mobile-phone-production-china-11962910