Warm hints: The word in this article is about 692 and reading time is about 5 minutes. Guidance: With the advent of 5G era, Samsung's advantages will become more prominent. As long as Samsung strives to establish an efficient local management and management team, fully attaches importance to and seizes the market share of low-end mobile phones, and grasps the advantages of folding OLED screen technology, Samsung will still have great hope to regain the Chinese market.
As we all know, Samsung does not seem to give up the idea of China as the dominant mobile phone market in the world, despite its poor performance in the Chinese market. Instead, Samsung decided to return to China.
With the advent of 5G era, Samsung’s advantages will become more prominent. As long as Samsung strives to establish an efficient local management and management team, fully attaches importance to and seizes the market share of low-end mobile phones, and grasps the advantages of folding OLED screen technology, Samsung will still have great hope to regain the Chinese market.
On August 21, Quan Guixian, president of Samsung Electronics Greater China, made such a statement at the new product launch of Samsung Galaxy Note 10 series. On the same day, Samsung released Galaxy Note 10 and Galaxy Note 10 + 5G, the two latest flagship aircraft, the former for 6599 yuan, the latter for 7999 yuan.
“This is the first 5G mobile phone released by Samsung in China, and Samsung will make every effort to promote the commercialization of 5G in China,” said Kwon.
An insider told the International Finance Daily that Samsung is clearly still obsessed with the Chinese market.
According to the latest data released by Strategy Analytics, Samsung’s mobile phone market share in China was only 0.7% in the second quarter of 2019, up from 20% five years ago.
What happened behind the sudden change? Can 5G help Samsung return to glory and rise again in the Chinese market?
Price Reduction Returns to China
According to the latest data released by Market Research Institute IDC, Samsung shipped 341 million units in the global market in the second quarter of 2019, ranking first with a market share of 22.7%, which is in sharp contrast to the Chinese market.
Quan Guixian also disclosed this signal in his speech at the new product launch. He said, “Samsung will promote the popularization of 5G in China and bring the leading 5G technology and terminal products to the Chinese market.” At the same time, “Samsung will continue to listen to the voices of Chinese consumers and grow with Chinese society”.
A senior star fan told the International Finance Daily that Samsung showed great sincerity, which can be seen from the price of the Note 10 series. “The new national edition sells for 6599 yuan and 7999 yuan respectively, up to thousands of yuan cheaper than the international edition. Samsung is really trying to meet the needs of Chinese consumers.”
All along, Samsung’s impression among domestic consumers is that the price is too high. “Few people are willing to pay $7,800 for an Android mobile phone,” the comment on social networking sites represents the voice of many Chinese consumers. Some insiders commented that “price reduction is the inevitable choice of Samsung.”
It is understood that on August 8, Samsung released the Note 10 series international edition in New York, USA. Among them, Note 10 sells for $949 (about 6704 yuan) and Note 10 + 5G for $1299 (about 9176 yuan).
In an interview with the International Finance Daily, Pei Yongzhi, a communications industry observer and Vice-President of communications world media, said that the pricing of Samsung Note 10+5G version is reasonable. Referring to the previous mainstream opinion that this year’s 5G mobile phone (new model) will be above 8000 yuan, Samsung’s certain price has certain marketing gimmicks. And attraction.
Sun Yanbiao, president of the First Mobile Phone Industry Research Institute, told the International Finance Daily that although Samsung’s pricing is higher than the current price of 5G mobile phones launched by domestic manufacturers, the domestic 5G mobile phone is an upgrade of the old model, and Samsung is a complete flagship new product. From this point of view, Samsung’s pricing is not expensive.
Guo Tao, an Internet expert and angel investor, told reporters that while the core configuration remains the same, the price of the state-owned version of mobile phones is more affordable than that of the international version, indicating Samsung’s determination to return to the Chinese market with 5G mobile phones. However, compared with several 5G mobile phones launched by Huawei, ZTE and vivo, Samsung’s pricing is still relatively high, and whether domestic consumers will pay for them still needs to make a question mark.
Failure to keep up with the Chinese Market
The veteran star fan told reporters that he would support “buy one” after Samsung Note10 was officially launched on September 12. However, for ordinary consumers, Samsung still does not seem to have enough temptation to cut prices.
“I shouldn’t buy it.” Several consumers gave this answer in an interview with a reporter from the International Finance Daily. In their opinion, Samsung mobile phones are still on the high side.
Guo Tao believes that high prices are a major reason for Samsung’s decline in China.
According to IDC data, Samsung Mobile accounted for 19.7% of China’s market share in 2013, ranking first in China’s smartphone market; Samsung Mobile Market share had dropped to 9.7% by 2015; in 2017, the decline continued, with only 2.2% market share; and the latest statistics show that Samsung’s share in China’s market is only 0.7%. 。
Sun Yanbiao said that for a long time, Samsung has been selling global standard products in China. There is no special model for the Chinese market, and it is also a high-end line. Samsung’s price is higher, but its high-end positioning is still very popular with business people. “The turning point was the Netote7 bombing in the second half of 2016, which was a major setback to Samsung’s reputation. Since then, Samsung has begun to lose ground in China.”
From September to October 2016, more than 30 explosions occurred in Samsung Note7 shortly after its launch. One of the explosions caused an aviation fire, which caused the explosion gate of Samsung’s mobile phone to heat up sharply. In October 2016, the Civil Aviation Administration of China issued a ban prohibiting passengers and crew members from carrying Samsung Note7 mobile phones.
“As a business group oriented Samsung mobile phone, this ban has a great impact on Samsung, directly causing a large loss of users and serious damage to brand reputation.” An insider told the International Finance Daily.
Sun Yanbiao told reporters that after the “explosion door incident”, Samsung delayed the sale of new machines, resulting in a 6-8 month gap in the Chinese market. Chinese manufacturers seized the opportunity to launch products adapted to the characteristics of the Chinese market (pursuing cost-effectiveness). Since then, Huami OV has appeared one after another. The big curtain of the rise of the domestic mobile phone brand was opened.
Ai media consultation data show that from January to July 2017, China’s mobile phone market shipped 281 million units, of which domestic smartphones shipped 266 million units, accounting for 94.7% of total mobile phone shipments. Huawei ranked first with 21.6% of sales, OPPO and vivo ranked second and third with 17.5% and 15.5% respectively, and millet ranked fourth with 10.4%.
Guo Tao said that the brand crisis triggered by the “Note7 explosion” was another major reason for Samsung’s failure. In addition to strategic mistakes, Samsung failed to grasp the low-end market and gradually lost the favor of Chinese consumers.
In addition, Pei Yongzhi also pointed out that Samsung’s marketing service system is not in place, and communication with distributors and users needs to be further strengthened. The veteran star fans said that Samsung lacks in brand and legal affairs. “There are always some doubts and even malicious blackmail about Samsung on the Internet, but Samsung seems to turn a blind eye to it and seldom respond, allowing rumors or malicious incidents to spread.”
Can it rise again?
Samsung does not seem to be content with the status quo in the face of strong enemies and poor performance in the Chinese market. As China enters the 5G commercial era, Samsung intends to take this opportunity to recapture the lost market.
“We have a complete end-to-end industry chain and have taken the lead in achieving 5G commercialization worldwide. Samsung has been committed to promoting the development of 5G technology, actively promoting the formulation of 5G standards, will bring the achievements and experience gained in the world to China, and help the development of China’s science and technology industry. On August 21, Quan Guixian said so. In February this year, he made a high-profile announcement in Wuzhen, Zhejiang Province, “Return to China’s battlefield”.
Samsung, as a global mainstream equipment manufacturer, has chips, core networks, terminal products and radio solutions. It almost covers the layout of the whole industry chain, and also achieves end-to-end 5G technology products. It is proposed that there is enough bottom-line and theoretical opportunity for Samsung to rise again.
At the end of last year, there were media reports that Samsung announced that it would invest $22 billion in 5G and occupy 20% of the communications equipment market in three years. Some insiders believe that the mobile phone market is undoubtedly an important part of the strategy.
Guo Tao said that Samsung had started to develop 5G as early as around 2010. With the advantages of its whole industrial chain layout, it has now taken the lead in 5G core technology and network commerce. In the 5G business area, Samsung takes the lead in landing in many countries and regions around the world. From the market share of 5G communication equipment, Samsung still ranks first in the global 5G equipment market.
“Samsung attaches great importance to this new product and wants to use 5G to fight a turnaround battle.” A Samsung mobile phone supplier told the International Finance Daily that Samsung had previously had private exchanges with suppliers, distributors and other partners, and was confident and expecting the first 5G mobile phone to be launched in the Chinese market.