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 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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42 Comments

4. Barney_stinson

Posts: 672; Member since: May 30, 2016

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

10. pagal

Posts: 49; Member since: Jul 04, 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.

13. kiko007

Posts: 7493; Member since: Feb 17, 2016

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

28. justrt

Posts: 446; Member since: Jul 10, 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!

43. AmashAziz

Posts: 2898; Member since: Jun 30, 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!

14. pagal

Posts: 49; Member since: Jul 04, 2016

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

15. talha_16

Posts: 62; Member since: Oct 12, 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.

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. :-)

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.

21. TechieXP1969

Posts: 14967; Member since: Sep 25, 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.

31. Xperia14

Posts: 1207; Member since: Sep 01, 2015

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

36. poptart574

Posts: 223; Member since: Feb 29, 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.

32. ctdog4748

Posts: 797; Member since: Mar 05, 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...

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.

35. poptart574

Posts: 223; Member since: Feb 29, 2016

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

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.

44. OdysseasP

Posts: 67; Member since: Aug 08, 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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