Samsung produces many of the most popular Android phones. With over 300 million smartphone sales per year, it is also the world's largest smartphone manufacturer. Although Samsung's lead was unassailable in the past few years, it is not as strong in 2021. In recent quarters, Samsung's mobile division has seen its profits drop due to missteps with the Galaxy S Series and slower demand for flagships in general. It is now facing a greater challenge from Chinese competitors. While Samsung holds a dominant position within North America, this is not the case in other markets. In key markets, such as China, India and Europe, Chinese brands like Vivo and Xiaomi, BBK Electronics' owned OPPO, Vivo, and OPPO have managed to overtake Samsung. Samsung's status as the largest smartphone manufacturer in the world is now at risk. VPN Deals: A lifetime license for $16, and monthly plans starting at $1. The latest Counterpoint Research data shows that Samsung sold 57.9M phones in Q2 2021. This resulted in a global market share 18%. With 52.5 million sales, a 16% market share and 52.5 million total units sold, Xiaomi was second. However, when it comes to annual growth, Samsung stands at just 8% while Xiaomi is at 82%. Let's now take a closer look at Samsung's performance in key global markets to see if it can maintain its lead as the world's top phone manufacturer in the next quarter.North AmericaSource: Hayato Huseman / Android CentralThe smartphone market share in North America is split between Apple and Samsung. Counterpoint Research's Q1 2021 market share data showed that Apple accounted for 55% of the market, while Samsung was responsible for 28%. Nabila Popal (IDC's global device tracker research director), stated that Samsung does not prioritize any one region over the other. You want large centers and you will continue to drive share as a company. She said that (Samsung) evaluates their performance based upon volume share versus share. "They consider any region important if they can drive quality." Samsung is the undisputed leader in North America among Android device manufacturers. Popal pointed out that there has been some seasonality in the past quarters, but Samsung is still number two and represents a significant volume worldwide. It accounts for about 11% of all global markets, according to Popal. It is relevant and you can't ignore a market such as the U.S. to be a global leader," she stated. North America is different from other regions. Samsung's strategy is that smartphone sales are structured through telecom operators. Unlocked phones are increasing in popularity, but the vast majority of phone sales are made through carriers. Samsung was able, ten years ago, to establish key carrier partnerships. Samsung is still the best option if you are looking for a 5G-enabled smartphone that can work seamlessly with all three major U.S. carrier networks. Counterpoint Research vice-president Neil Shah stated in an interview that the majority of Samsung's North American sales are from the Note and S series, but it is now doubling down on the 5G A-series in order to take over the LG mobile market share. Shah said that Samsung will be able to "increase it share further in North America and Korea in 2021 after LG's official departure." Samsung is now without LG, so there's not much competition in North America for Android phone makers. HMD Global's Nokia and Motorola, both owned by Lenovo, have a stronghold in the budget segment. Now there's a new entrant: OnePlus. OnePlus saw a 428% increase in sales thanks to the Nord N series, which sold over 1,000,000 units in the past two quarters. Now that it is fully integrated with OPPO, it can take advantage of LG’s exit. It will take OnePlus many years to reach the same level as Samsung in North America. AsiaSource: Apoorva Bhardwaj/ Android CentralChinese smartphone manufacturers heavily influence the Asian market. Samsung's market share has declined over the past five years. In China, Samsung has had a market share of less than 1% for some time, while in India, it is at risk of losing its second place to Realme and Vivo. Brands like Vivo, Realme and Vivo have a stronghold in the budget segment, which is why they are so dominant. Popal claims that 87% smartphones in APeJC, Asia Pacific excluding Japan and China, retail for less than $400. The sub-$200 segment accounts for 67%. The market share of Chinese brands in the sub$400 segment was 67% in the first half 2021. Samsung is at 20%. As in many other countries, Xiaomi leads Asia. Popal stated that Xiaomi's share increased from 17% to 21.5% by 2021H1 in 2018, narrowing the gap to Samsung, who now has 22.3% of the market (versus 27% in 2018). We'll break down this section into key regions China and India, Southeast Asia and Korea to get a better idea of the numbers and see how Samsung is performing in each market. ChinaSource: Counterpoint ResearchBBK's Vivo (and OPPO) dominate the Chinese market. They accounted for 23%, 21% and 74.9 million shipments respectively in Q2 2021. Xiaomi was third, with a 17% share of the market and a YoY increase of 70%. The Mi 11 Ultra and Mi 11 Ultra allowed the brand to close that gap to BBK. Popal noted that 83% of China's top eight brands account for the market. Samsung is not included in the list with a share below 1%. In 2013, Samsung was China's largest phone manufacturer with a market share 20%. However, its dominance has declined since the arrival of Huawei, Lenovo and Xiaomi. Samsung was unable to compete with the domestic players in China's premium and budget segments. They also introduced new features such as retractable cameras and bezelless designs that allowed them to keep the momentum. Popal stated that it was difficult for the global leader to compete on this market because of intense competition from local Chinese competitors with their product portfolio, highly competitive pricing, and better channel relationships. Popal also stated that the Chinese government played a significant role in the success of local players. While Samsung had support from the government, they did not. By 2016, Samsung's market share had fallen to 3%. The Note 7 disaster sealed its fate in China. Samsung closed its last factory in China for phone manufacturing a few years back to make way for new factories in Vietnam and India. This was in order to shift its focus on these markets. IndiaSource: Counterpoint ResearchIn Q4 2017, Xiaomi overtook Samsung as India's biggest handset brand. It hasn't lost that position since. India is an important region for Samsung's global ambitions. It is the third largest smartphone market in the world and Samsung has intensified its efforts there following the downturn in China. The bulk of India's sales momentum is concentrated on the budget segment. Samsung has a range of phones that are specifically designed for this market, including several models only sold in India. The Galaxy M series has been a huge success for the brand. Upasana Joshi, IDC's chief analyst, points out that Samsung is one of the few brands still making feature phones. This continues to be a competitive advantage for the brand against Chinese competitors. In spite of its subpar hardware, the Galaxy J series from South Korea performed well in India over the years. The recent strategy shift in Galaxy A series saw Samsung increase sales in the budget and entry-level categories. The Galaxy J, Galaxy C and Galaxy On offerings were merged into the Galaxy A series. Samsung also launched the Galaxy F series and M series to support e-commerce. Realme and Vivo may knock Samsung out of second place in India. Samsung is able to rely on its vast Indian distribution network and retailers to drive the majority of its sales. However, sales through this channel have declined in recent quarters so Samsung has been aggressive in the e-commerce segment to stand out as an alternative to Realme and Xiaomi. It has paid off, Joshi says that Samsung is now second in the online segment. Joshi says that Samsung is a lifestyle brand because it sells everything, including TVs and washing machines. This results in greater "brand awareness and stickiness" and loyalty. Although Samsung saw a slight increase in sales, it's not growing as quickly as its Chinese counterparts. IDC reports that Samsung sold 5.5 million smartphones in India in Q2 2021. This gives it a 16.3% market share. Xiaomi, however, was responsible for 9.5 million sales and a 29.2% market share. Although Samsung held the second place for four years, Realme and Vivo continue to make huge gains. Samsung saw a 15% increase in sales from 2020, while Xiaomi's sales increased by 84%, Vivo 57%, and Realme 174.9%. Southeast AsiaSource: Counterpoint ResearchAnother market where phone makers are gaining ground is Southeast Asia. Data from Q1 2021 shows that OPPO is in the lead with 22% market share. Samsung has 19% and Vivo has 16%. OPPO's entry into the mid-range market with its Reno series and A series, which is budget-oriented, allowed it to keep its lead. Samsung's Galaxy A series was the biggest driver of sales in the region. Thailand saw an 18% YoY sales increase in Q1 2021. OPPO remained at the top with a 22% share. Vivo is next with a 19% share. Samsung comes in second place with a 20% market share. With a 37% market share, Samsung is the dominant player in Vietnam. Xiaomi has 17% and OPPO has 16%. Samsung's success in Vietnam is heavily dependent on its budget portfolio. The Galaxy A02s and A12s are the most popular products in Vietnam. M31 makes up the bulk of Samsung's sales. Samsung's strong budget portfolio and extensive regional retail presence should help it stay steady in Southeast Asia. It needs to improve its online strategy, despite e-commerce growing and Realme becoming more prominent. Korea Samsung is the dominant brand in its country. The brand controls the smartphone market with a market share exceeding 70%. With Android being the dominant platform, Samsung is almost unchallenged. LG is a distant third with less than 6%. With a 22% share, Apple is second, while LG is third at less than 6%. Samsung's exit from the handset business will allow it to expand its lead in Korea. Although Samsung has a majority share commanding more than 70% of the market, Samsung will certainly benefit in the $400 segment, where LG does have some share, but Xiaomi is virtually non-existent. Popal believes that Samsung will be facing increased competition in the sub-$400 market in Korea as Xiaomi has become more aggressive in the mid- and low-end tiers. Japan Source: IDC Similar to China, Samsung does not have a strong presence Japan. IDC's Q4 2020 figures show that Apple holds 52.6% of the market, followed closely by Sharp (12.4%) and Kyocera (7). With a 6.8% share of the market, Samsung is fourth. The tensions between South Korea, Japan could explain Samsung's poor sales performance in the country. Samsung tried to counter this by removing its logo from smartphones in 2015. However, the Galaxy label was applied to devices. This didn't result in any significant sales growth. Latin AmericaSource: Apoorva Bhardwaj/ Android CentralPopal stated that unlike North America, where Samsung is facing strong competition from Apple's iPhone, Latin America has a strong market share and is number one. With a 40% market share, the company is followed by Lenovo, which hovers between 15 and 20 percent, and Xiaomi, who just barely makes up 5%. Popal stated that Samsung had a great opportunity to benefit from the exit of Huawei in the market. She said that Huawei held a significant share in LatAM and that Xiaomi's exit has made them more focused in the region. Samsung, however, has benefited.Source: Counterpoint ResearchHuawei left shortly after Donald Trump placed sanctions against software companies based in China that pose a threat to national security. Huawei was eliminated from the market after it was denied access to Android, Google Mobile Services and the Play Store. She stated that U.S. sanctions had impacted Huawei's access to components as well as access to Google Mobile Services. She also said that it doesn't matter how good the device, because Google can pull its services and Android will stop working. Latin America is an area where Samsung has little competition. Only Xiaomi (via Motorola), and Lenovo (via Motorola), have a strong presence in Latin America. This is not likely to change in the near future. The inability to manufacture locally in Brazil and other countries has hindered Xiaomi's ability to scale up. Already, Samsung accounts for four of the ten smartphones sold in Latin America. This momentum won't slow down anytime soon. EuropeSource: Hayato Huseman / Android CentralCounterpoint Research's Shah stated that Samsung's exit from Huawei would benefit Europe in a similar fashion to Latin America. Strategy Analytics data shows that Xiaomi overtook Samsung as the top smartphone vendor in the region in Q2 2021. Xiaomi's smartphone shipments increased by 67.1% over the past year, reaching 12.7 million units. Samsung, which held the top spot until recently, shipped 12,000,000 phones in Q2 2021. This is a 7% decrease compared to the previous year. Apple remains in third place with a 19.2% share of the market.Source: Counterpoint ResearchShah stated that Europe is the next major battleground for Samsung and Chinese brands. Chinese brands are rapidly making inroads in Eastern Europe, some Western European markets like Spain, Portugal, Portugal and the Nordics. Samsung will continue to hold its market share by launching a sub-$150 5G A Series portfolio. Popal also noted that Samsung will be facing more competition at the low end due to the growing number of Chinese smartphone manufacturers. She pointed out that China-based companies faced increased competition in 2017 at the same time as Samsung's A series phones were launched in the region. However, the launch of those phones was a huge success for Samsung. Due to the rapid rise of Chinese brands in recent years, Samsung was in strong danger in the low-end. It was a great move by Samsung to launch the A series phones, which have high specs but low prices. She stated that Samsung had strengthened their market position at the low-to mid end and secured their position among the top volume gainers. Samsung continues to position its Galaxy A phones with 5G, such as the A52 5G, in order to keep its momentum in the region. However, new launches like the OnePlus Nord 2 or Reno 6 Pro have more innovative designs and better cameras. Middle East and AfricaSource: Apoorva Bhardwaj/ Android CentralMEA (Middle East & Africa) has seen a 35% increase in year-on-year sales. Counterpoint Research's latest data shows Samsung at the top with 16% market share. However, this lead is lower than 20% last year. With a 11% share, Xiaomi is third. However, it's the Transsion brands that are making big gains in this area. Transsion Holdings is a Chinese conglomerate that looks a lot like BBK. It counts Tecno and Itel as its brands. These three brands have a combined market share of 32%, which is double their growth in the past 12 months. Tecno is the market leader with 13%, followed by Itel at 10% and Infinix at 9%.Source: Counterpoint ResearchHuawei held a significant market share of 8.2% in the Middle East, but it is now only 2.2%. You can see that Vivo, OPPO and Xiaomi were the main beneficiaries of Huawei's problems. Samsung has remained focused on the Middle East's $100-200 segment, which seems to have been a success. IDC reports that Samsung's market share is more than 50% in this entry-level segment. This region has the highest IDC data. IDC reports that Samsung is currently looking to expand its Middle East distributor network and encourage carrier partnerships to increase sales through this channel. Transsion dominates Africa. IDC says that the conglomerate was able localize distribution and pricing strategies to meet local demand. Its initial focus on Africa allowed it to establish a lead. IDC notes that Samsung must increase its pricing flexibility and launch new product variants in order to catch up with Transsion. It also needs to be more visible in the offline retail sector. Abhilash Kumar, Strategy Analytics Analyst, also noted that Samsung should concentrate on Africa's local distribution and retail network to increase sales. "Tying up with local retailers/distributors to build own hardware and service ecosystem and improve after-sales services will help Samsung." Samsung remains the market leader in Africa and the Middle East, but it faces increased competition. It will be difficult to keep the top spot. Is Samsung able to keep its global lead?
