Daily Management Review

Samsung wins in the US-China trade war


08/02/2019


Both winners and losers from the U.S.-China trade war and Donald Trump’s sanctions against Chinese technology companies have now become visible in the global smartphone market. Samsung feels best of all in this situation. Despite recent problems with the foldable smartphone, the company has increased sales and its presence in the global market.



Open Grid Scheduler via flickr
Open Grid Scheduler via flickr
Speaking in Shenzhen in mid-June, Huawei’s head Ren Zhengfei said that “no one will win” in the war between his company and the US authorities and the confrontation between the US and China. However, some observers believe that the Chinese top manager was in a hurry to say it as the South Korean Samsung could well become the winner of the trade war. Despite the global trend to reduce the smartphone market, problems with launching sales of the foldable smartphone, Samsung is increasing smartphone sales and strengthening its leadership in the global market. Now the South Korean manufacturer occupies 23.2% of the global share, follows from the report of Canalys.

According to the results of the second quarter, Samsung Electronics revenue slipped by 4%, but this is primarily due to the semiconductor market, where the sales of the Korean manufacturer fell by 27% (and memory chips directly - by 34%). As for smartphones, Samsung delivered 76.9 million units over the past three months. This is an increase of 6% compared to the second quarter of last year. This success was accompanied by the largest update of the smartphone lineup since the launch of the Galaxy series, the introduction of discounts on J-series smartphones and the expansion of the A-series line of models. As a result, new devices - from A10 to A80 - accounted for more than 50% of the company's sales in the second quarter.

Huawei, working under US sanctions, has also increased sales. The company managed to sell 58.7 million smartphones, which is 8% more than a year earlier. The market share of the Chinese manufacturer grew by 1.7% to 17.7%, granting it he second place after Samsung. The company earned $ 32.2 billion in the second quarter, which is 23% better than last year. However, Huawei managed to achieve this only by reorienting to the domestic market.

According to Canalys, in the second quarter, the Chinese manufacturer reached a record market share of 38% in the home market. Over the past eight years, no smartphone manufacturer has been able to achieve such success in China.

Moreover, the Chinese smartphone market has been declining for the ninth consecutive quarter, and Huawei has managed to increase sales here over the past year by 31%. Now the Chinese market accounts for almost two-thirds of all sales of the company.

After Donald Trump signed a decree in May banning US companies from cooperating with Huawei and the trading partners of the Chinese manufacturer, sales of Huawei smartphones in Europe fell sharply. In just a month, the company lost a third of its market share in countries such as the UK, France, Spain, Germany and Italy. According to the Kantar research company, compared to May, when the company was blacklisted, sales in the above-mentioned countries amounted to 9%.

source: ft.com






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