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Huawei may top smartphone shipments in Q4 2019
Source:Global Times Published: 2018/11/19
Samsung's largest mobile experience center in the world opens for business after its inauguration in Bangalore, India on September 11. Photo: VCG
China's technology giant Huawei is highly likely to claim the top spot in world smartphone shipments by the fourth quarter of 2019 if Samsung doesn't adjust its strategy quickly, said industry analysts on Monday.
"It is probable that Huawei will overtake Samsung in the fourth quarter of 2019 at the earliest, but just for that quarter, not the whole year, given the current huge gap that Huawei still has with the South Korean vendor," Jia Mo, an analyst at Canalys, a global technology market analysis firm, told the Global Times on Monday.
Samsung is experiencing further declines in its smartphone sales in China, and it is probably putting more focus on the Indian market, digitimes.com, a Taipei-based industrial news website, reported on Friday.
Samsung shipped about 600,000 smartphones in China in the third quarter of 2018, and its total shipments for the year in the Chinese market may reach only 3 million units, the report said, citing industry sources.
Xiang Ligang, chief executive of Chinese telecoms industry news website cctime.com, told the Global Times Monday the poor performance of Samsung smartphones in China mainly reflects the impact of the Note 7 explosion scandal years ago.
"China is the most competitive market for smartphone manufacturers. Samsung's brand image was almost destroyed after the scandal," Xiang said, adding that Samsung is now trapped in a trend of weak performance in China.
Experts don't necessarily agree that Samsung is increasing its production capacity in India to expand its market share there.
Samsung was the top smartphone vendor in India before losing the title to Chinese smartphone giant Xiaomi in the fourth quarter of 2017.
According to a Canalys report in January, Xiaomi shipped 8.2 million smartphones in India during the fourth quarter of 2017, while Samsung shipped 7.3 million units in the same period. These top two vendors commanded more than 50 percent of the smartphone market in India, with Xiaomi at 27 percent and second-place Samsung at 25 percent during the quarter.
"Moving output to India partly reflects Xiaomi's overall strategy to shift production to markets with cheaper labor. It's also partly due to the tariff system in India, which imposes high rates on completed phones but lower rates on smartphone components," Jia said.
Analysts don't think Samsung's new foldable smartphones will halt the downtrend in its shipments.
"It's more like a demonstration of the company's display technology innovation. Shipments won't grow much unless the company makes more strategy adjustments, such as rolling out cheaper but practical models in India," Jia said.
"If Samsung does not alter the trends quickly, Huawei is very likely to surpass it in the fourth quarter of 2019," Jia added. "But to be No.1 for the whole year, Huawei still needs a couple of years."
http://www.globaltimes.cn/content/1128063.shtml
Source:Global Times Published: 2018/11/19
Samsung's largest mobile experience center in the world opens for business after its inauguration in Bangalore, India on September 11. Photo: VCG
China's technology giant Huawei is highly likely to claim the top spot in world smartphone shipments by the fourth quarter of 2019 if Samsung doesn't adjust its strategy quickly, said industry analysts on Monday.
"It is probable that Huawei will overtake Samsung in the fourth quarter of 2019 at the earliest, but just for that quarter, not the whole year, given the current huge gap that Huawei still has with the South Korean vendor," Jia Mo, an analyst at Canalys, a global technology market analysis firm, told the Global Times on Monday.
Samsung is experiencing further declines in its smartphone sales in China, and it is probably putting more focus on the Indian market, digitimes.com, a Taipei-based industrial news website, reported on Friday.
Samsung shipped about 600,000 smartphones in China in the third quarter of 2018, and its total shipments for the year in the Chinese market may reach only 3 million units, the report said, citing industry sources.
Xiang Ligang, chief executive of Chinese telecoms industry news website cctime.com, told the Global Times Monday the poor performance of Samsung smartphones in China mainly reflects the impact of the Note 7 explosion scandal years ago.
"China is the most competitive market for smartphone manufacturers. Samsung's brand image was almost destroyed after the scandal," Xiang said, adding that Samsung is now trapped in a trend of weak performance in China.
Experts don't necessarily agree that Samsung is increasing its production capacity in India to expand its market share there.
Samsung was the top smartphone vendor in India before losing the title to Chinese smartphone giant Xiaomi in the fourth quarter of 2017.
According to a Canalys report in January, Xiaomi shipped 8.2 million smartphones in India during the fourth quarter of 2017, while Samsung shipped 7.3 million units in the same period. These top two vendors commanded more than 50 percent of the smartphone market in India, with Xiaomi at 27 percent and second-place Samsung at 25 percent during the quarter.
"Moving output to India partly reflects Xiaomi's overall strategy to shift production to markets with cheaper labor. It's also partly due to the tariff system in India, which imposes high rates on completed phones but lower rates on smartphone components," Jia said.
Analysts don't think Samsung's new foldable smartphones will halt the downtrend in its shipments.
"It's more like a demonstration of the company's display technology innovation. Shipments won't grow much unless the company makes more strategy adjustments, such as rolling out cheaper but practical models in India," Jia said.
"If Samsung does not alter the trends quickly, Huawei is very likely to surpass it in the fourth quarter of 2019," Jia added. "But to be No.1 for the whole year, Huawei still needs a couple of years."
http://www.globaltimes.cn/content/1128063.shtml
