South Korean smartphone manufacturer, Samsung has been dominating several international markets globally since a couple of years now. With a more versatile, state-of-the-art and advanced array of high end devices, Samsung has made its mark as the leading smartphone maker on the global view front. However, it has been subjected to a bit of tough resistance from some of the local startups in several countries worldwide.
We start from China, where is has been beaten by a Beijing-based smartphone maker Xiaomi to hand it over its No. 1 rank in the Chinese smartphone market, the planet’s biggest platform. The Korean consumer electronics firm lead from the front in the Q4 of 2011 and since then it had no parallel until the start of 2014, when its shares declined from 18.3 percent in Q1 to 12 percent in Q2 of this ongoing year.
Xiaomi’s share of the Chinese smartphone market, in contrast, hiked from a tiny five percent in 2013 to a healthy 14 percent this Q2. Other fellow Chinese companies like Lenovo and Huawei are also getting into the party, thus predicting a throat-cutting competition for Samsung which will be a tough task for it to catch up with.
In addition to this, the fastest-growing market globally, India, is also eager to say goodbye to the Samsung throne as the local maker Micromax has snatched the top spot from it in overall smartphone sales.
Other than that, Samsung is enjoying the front seat of the global smartphone bandwagon. The tech innovations have almost reached their apex and top-selling devices in the international smartphone market are transforming briskly from expensive to low-end variants.
The one significant factor, which cannot be overlooked, is the price tag of the product. Xiaomi’s major success factor is its price-conscious and cost-effective products, which have resulted in beating the US giant Apple in China and is now termed as the “Chinese Apple” frequently.
Samsung is bewildered as if it recovers its market share by coming up with cheaper smartphones, its earnings will still squeeze.
Samsung’s allies and peripheral suppliers are feeling the heat as supremacy of the smartphone kingdom is quickly going in to the hands of Chinese firms. The IT industry, which is the major contributor in the Korean economy, is on the verge if a major crisis. The future of Samsung and the Korean economy is now relying on whether the company can fix this situation with a “Plan B” that encompasses something more than just smartphones.