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Samsung smartphone sales in China slide for the third year in a row

Posted: , by Luis D.

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Samsung smartphone sales in China slide for the third year in a row

Despite the success of its Galaxy S7 and S7 edge flagship smartphones, which considerably boosted operating profit for the second quarter, the vast Chinese market keeps slipping out of Samsung's formidable grasp. The company's annual sustainability report revealed its sales decline in China has continued for the third consecutive year, dropping to 18%, 16%, and 15% consecutively. Expressed in terms of annual revenue decline, Samsung made 40.1 trillion won (US$34.9 billion) in 2013, 33 trillion won in 2014, and 31 trillion won in 2015.

Samsung still won't risk reducing its prices to the magnitude of its Chinese rivals.

Samsung used to be China's smartphone market leader in 2013, but it was slow to adapt to changing market conditions, which caused it to give up the throne, sinking to the fifth spot in the sales ranks. Local smartphone makers such as Huawei, OPPO, Vivo, and Xiaomi took the market for themselves with low-priced devices that matched or exceeded the quality of similarly-priced Samsung handsets.

The company's efforts of reclaiming the Chinese market have manifested in region-specific handsets like the Samsung Galaxy C4, which matches and exceeds the typical affordable "Chinese mid-ranger" traits with its metal body, Snapdragon 617 chipset with 4GB of RAM and 32GB of storage, a 16MP rear camera, and fingerprint sensor, among other things. However, it's still priced above a flagship-category smartphone by any of the aforementioned brands. Samsung clearly needs to rethink its strategy for the peculiar Chinese market.

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posted on 04 Jul 2016, 09:28 1

4. Barney_stinson (banned) (Posts: 672; Member since: 30 May 2016)


Out of all chinese companies!! Only xiaomi have great software !! Miui8 is great in features! So they have chance!!

posted on 04 Jul 2016, 09:47 1

10. pagal (Posts: 49; Member since: 04 Jul 2016)


People in china are quite dumb. They either buy "is**ts" or "copied is**ts". There is no place for legendary devices like the s7 and edge.

posted on 04 Jul 2016, 09:54 6

13. kiko007 (Posts: 5385; Member since: 17 Feb 2016)


Legendary? Dude, it's a phone, nothing "legendary" about it. Besides, it's their money, so why do you care what they buy?

posted on 04 Jul 2016, 13:00 2

28. justrt (Posts: 437; Member since: 10 Jul 2014)


I wouldn't say they are dumb. After all, if some OEMs offer Android devices with the same hardware specs as Samsung's devices, but at a lower price, why buy the more expensive?!
As for those people who buy iPhones.. They are all over the world. The percent of people with iPhones in countries like Australia, Japan and USA is way higher than of those in China!

posted on 05 Jul 2016, 09:27 1

43. AmashAziz (Posts: 1479; Member since: 30 Jun 2014)


Your way of commenting makes it seem that you are jealous of iPhones being bought by these chinese. You call them dumb because they don't buy what you want them to buy! You want the so-called-legends (by you) of samsung to be bought instead so that you may troll and bash Apple after that happens. Even though there wasn't even a single mention of iPhones in this article, the way you wrote about them proved how much you hate them and how much biased u r towards samsung. People like u always say things like these and then ask why you are taught so much.People like u always argue with others (like you will argue with me) that how u r not biased and what you wrote makes sense, yet you never think twice what you wrote and how it wasn't so sensible. Like calling them dumb becoz they are buying iphones.........did the author even mention them?? And are all chiness companies iphone copycats? Not really if you think about it. Everyone like you needs to think again before writing, instead of believing that everyone is wrong except you. Yes you can be stupid an bash me just because how long this comment is. But you can be sensible too and try to find the truth in it, then correct yourself. That would make me feel my job is done here! Seeing you reply to this. It wont matter to me if you reply rudely or sensibly, that would only effect ur life to be ignorant or thoughtful. Let the world buy what they wants. Choice is yours my friend!

posted on 04 Jul 2016, 10:01

14. pagal (Posts: 49; Member since: 04 Jul 2016)


OR they are deportating Samsung to support Kim John .lol.

posted on 04 Jul 2016, 10:24 4

15. talha_16 (Posts: 52; Member since: 12 Oct 2015)


Its all due to the high prices. Why would anyone want to buy expensive-high end samsung phones when they can buy cheap-high end phones like meizu or xiaomi.

posted on 04 Jul 2016, 10:51

16. Shocky (unregistered)


Seems Samsung have figured this out already and will be focusing more on margins than software/hardware gimmicks in the future.

People have short memories when it comes to news here. :-)

posted on 05 Jul 2016, 02:23

42. AlikMalix (unregistered)


Thanks for bringing that up - it's actually one the most Intersting news about Samsung in a long time and I'm gaining more respect for the brand because of it.

posted on 04 Jul 2016, 12:01 2

21. TechieXP1969 (Posts: 14501; Member since: 25 Sep 2013)


Samsung can't afford to drop prices down to match Chinese companies. For one, Samsung doesn't sell featureless phones.

Those companies aren't sell 300M phones per year. They probably never will.

Even though they may be using top branded CPUS, the rest of the components are garbage.

It's easy to sell a phone with a SD820 for $400 when you use the cheapest low coating diaplays, cameras and more.

For Samsung ro compete against these achieve brands, it would be lowering standards. It's not worth it.

In fact they can drop the low end and concentrate on mid and high ranged phones.

posted on 04 Jul 2016, 15:37 2

31. Xperia14 (Posts: 914; Member since: 01 Sep 2015)


Even the cheap Chinese phones are using better hardware. I think their biggest advantage in price comes from less marketing and tax advantages.

posted on 04 Jul 2016, 21:17 1

36. poptart574 (Posts: 151; Member since: 29 Feb 2016)


Garbage is found in trash cans not in millions of consumers pockets. These companies make great phones with great software at affordable prices. The rest of the industry should follow suit.

posted on 04 Jul 2016, 16:23 3

32. ctdog4748 (Posts: 797; Member since: 05 Mar 2016)


Samsung can't compete against the Chinese makers in the low end, because "Samsung doesn't build junk", and Samsung can't compete against Apple in the high end because "stupid isheep are brainwashed to buy anything Apple". Did any of you Samsung d!ckriders ever consider that just maybe Samsung ain't as great as you think?? Samsung can't even make their own OS, just sayin...

posted on 04 Jul 2016, 18:34

33. ItsTheJuan (unregistered)


Samsung does build low end devices. But you have to draw the line if you wanna maintain a good name. Chinease manufacturers have an advantage because they don't have to import anything either. You're a f**king idiot. I'm not saying Samsung is the best, but they are great. That is a fact. They f**king manufacture everything, not just cell phones. Samsung does have their own OS, Tizen. Some idiots are clearly biased.

posted on 04 Jul 2016, 21:13

35. poptart574 (Posts: 151; Member since: 29 Feb 2016)


Companies that build junk do not sell tens of millions of phones a quarter let alone a year. These companies are legit.

posted on 04 Jul 2016, 21:47 2

37. iDing-Dong (unregistered)


Don't waist your time in China Sammy boy. They don't like you and they rather copy yours and buy their owns.

posted on 06 Jul 2016, 03:16

44. OdysseasP (Posts: 64; Member since: 08 Aug 2014)


Unless Samsung realizes that Xiaomi, Oppo & OnePlus among other newcomer smartphone manufacturers pose an imminent threat to its very own existence then the slide in sales neither will be taking place only in China nor will it be something temporarily.

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