Samsung struggles in China's premium smartphone segment with rise of local brands

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Samsung struggles in China's premium smartphone segment with rise of local brands

Published: 02 Dec. 2024, 16:26

JIN EUN-SOO
[email protected]

Audio report: written by reporters, read by AI

People are seen inside a Huawei store at the Wangfujing shopping area in Beijing on November 26, 2024, shortly after Huawei's new Mate 70 mobile phone was launched. [AFP/YONHAP]

Samsung Electronics is grappling with rising competition from Chinese brands in the premium smartphone segment, traditionally dominated by Samsung and its long-time rival Apple.

In China, Samsung captured just three percent of the market for smartphones priced over $600 last year, according to a report from Counterpoint Research released Sunday.

Apple maintained its dominance, with a commanding 64 percent share, despite a recent sales slump in the region.

Huawei followed with 20 percent, while Xiaomi and OPPO each accounting for four percent. Samsung and Honor shared the fourth spot, each claiming three percent of the premium market.

Outside China, Apple continued to dominate the premium smartphone category, holding a global market share of 75 percent and trailed by Samsung at 20 percent. Chinese manufacturers, by contrast, collectively accounted for just 3 percent of the lucrative segment.

Counterpoint attributed the rise of Chinese brands in the premium sector to their rapid adoption of generative AI in models like Honor’s Magic 7, OPPO’s Find X7 and Xiaomi’s 15 series.

Samsung, meanwhile, has struggled to cement its foothold in the high-end segment, partially due to its Galaxy brand's “value-for-money” image when compared to Apple’s iPhones.

While Samsung led global smartphone shipments in the second quarter, with 19 percent of the total, it lagged behind Apple in revenue. Apple commanded 42 percent of the global smartphone market by value, while Samsung held 16 percent, reflecting its reliance on lower-priced models.

In Korea, Samsung’s dominance has also been challenged.

Apple’s market share in the third quarter rose by four percentage points to 19 percent, boosted by the country’s inclusion in the first wave of iPhone launches.

Samsung’s market share fell by the same margin, slipping to 80 percent during the period, according to Counterpoint.

BY JIN EUN-SOO [[email protected]]