Samsung, which has lost its dominance in the Chinese market, continues to dominate the world, while Chinese smartphones are rapidly declining

Tech 2023-05-10 02:50:04 Source: Network

For a long time, the industry has generally liked to say that the Chinese market is the world's largest market. However, Samsung, which lost the Chinese market, continues to dominate the global market in 2022 and has stabilized its position

For a long time, the industry has generally liked to say that the Chinese market is the world's largest market. However, Samsung, which lost the Chinese market, continues to dominate the global market in 2022 and has stabilized its position. On the contrary, Chinese smartphones, which have an advantage in the domestic market, are accelerating their decline. Is the Chinese market no longer important?

1 Differences in performance between Samsung and Chinese mobile phones

According to the global mobile phone market data provided by the analysis agency in 2022, the data shows that Samsung's shipment volume in 2022 is still as high as 259 million units, with a year-on-year decline of only 4.8%, lower than the global mobile phone market's decline of 9.9%. Such data undoubtedly shows that Samsung has stabilized its position.

Samsung has achieved such success despite having hardly gained market share from the Chinese market. It is reported that Samsung's current share in the Chinese mobile phone market is only about 1%, which can be almost ignored. However, in this situation, Samsung has been able to maintain a stable shipment volume, highlighting its strength.

In contrast, the performance of Chinese mobile phones in 2022 was quite dismal. Among the top five global mobile phone brands, three were Chinese mobile phone brands, and their shipments fell by more than 20% this year, more than five times that of Samsung, far exceeding the decline in the global mobile phone market.

Nowadays, Chinese mobile phones still hold 80% of the market share in the domestic market. Chinese mobile phones with localization advantages have a prominent competitive advantage in the domestic market. Most domestic consumers now choose Android phones and choose domestic phones, after all, the UI design of domestic phones is more in line with the requirements of Chinese consumers, and the price is also relatively affordable.

However, when China's mobile phone market had the world's largest, it had no choice but to rapidly decline. The decline was greater than that of Samsung and Apple, and even greater than that of the global mobile phone market. This indicates that the Chinese mobile phone market is no longer a safe haven for Chinese mobile phones, and relying on the development and growth of the domestic mobile phone market is no longer the first choice for Chinese mobile phones.

2 The declining influence of the Chinese market on mobile phone companies

The Chinese mobile phone market is still the world's largest mobile phone market, accounting for nearly a quarter of the global mobile phone market's sales. However, this market had already passed its growth period several years ago, and sales continued to shrink. In 2022, the mobile phone shipment volume in the Chinese market was approximately286 million units, falling below the level of 300 million units, and a contraction of 40% compared to the 470 million units in 2016.

The proportion of China's mobile phone market in the global mobile phone market is also rapidly declining. In 2016, the proportion of China's mobile phone market in the global mobile phone market reached 32%, but now it has shrunk to less than a quarter, undoubtedly highlighting that the influence of China's mobile phone market on the global market has decreased too much.

The declining influence of the Chinese market on the global market has weakened the ability of Chinese mobile phone brands to rely on the domestic market to seize the global market. This is the reason why Samsung can continue to dominate the global mobile phone market even if it loses the Chinese market, and it is also the reason why Chinese mobile phone brands continue to decline in their global market share.

Fortunately, after the growth of Chinese mobile phones in the domestic market, they began to expand into the global market very early on. Taking Xiaomi as an example, it won the first place in the domestic mobile phone market in the third quarter of 2014 and entered the Indian market in July 2014. Afterwards, it won the first place in the Indian smartphone market in the third quarter of 2017 and dominated the Indian market until the third quarter of 2022. After Xiaomi's successful entry into the overseas market, many Chinese mobile phone brands have expanded into the overseas market. Xiaomi's shipment proportion in the overseas market has reached 70%, while OPPO and vivo's overseas shipment proportion has reached 50%.

However, in recent years, Chinese mobile phones have also suffered setbacks in the overseas market due to various factors. According to data from Q4 2022, Xiaomi lost its position as the number one in the Indian mobile phone market, while Samsung regained its position as the number one in the Indian mobile phone market. In other markets, it has also faced some impacts and recession, causing Chinese mobile phones to once again rely on the domestic market.

As mentioned above, the Chinese mobile phone market is no longer as glorious as before, and the sales of mobile phones in the Chinese market continue to decline. The hope that Chinese mobile phones can rely on the domestic market to stabilize their position has been dashed, and the pressure on both domestic and international markets has led to a significant decline in the shipment volume of Chinese mobile phones in the global market. Samsung has benefited from this, and the decline in shipment volume has been smaller without the influence of the Chinese market, becoming a winner.

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