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While it isn’t particularly new news, Samsung has been feeling the pressure in China, and around the globe, as of late. As the mobile phone division in the Chinese market makes up roughly 9% of the company’s total revenue, the tech giant is finally doing something about losing so much marketshare. The company plans to release a budget-friendly line of smartphones with hopes of taking back the top spot in China, among other markets.

Samsung is especially noticing declining marketshare in China, India, Thailand, and the Philippines. These are markets where companies like Xiaomi, Lenovo, and Huawei work exceptionally well, due to their low-cost upfront pricing.  So, what is this “pressure” Samsung is feeling? On Thursday, Samsung is expected to report a 60% loss in profits since September of last year, mainly due to “increased competition” in China. On top of this staggering statistic, analysts are reporting that the mobile phone division will fall by 8.1% in the third quarter, down from 19.8% in Q1.

As a counter measure of sorts, Samsung is slashing the prices of their current handsets by 20% in China. As the company has spent years building up their reputation as a premium brand, the last thing they want is to spend more time on budget phones but that may be the only move they have left to play. For now, details are still scarce regarding the company’s new budget-friendly line of smartphones but it is great to see that they’re finally doing something about their dwindling marketshare.

Do you think Samsung could once again be the top device manufacturer in China with their new plan of action? Do you think it would alter their “premium brand” reputation? Let us know your thoughts!

Jimmy Westenberg
Lover of all things Android, Star Wars, dogs, coffee, and music.
  • Sal

    It’s the same cycle being repeated with past number one smartphone makers. They will strive to the top and remain at the top for several years. After a while they will go downhill a little due to stiff competition. If Samsung feels that taking on this course of action will benefit them in China then by all means, go ahead Sammy. Just keep in mind that you won’t stay at the top for too long in those markets because of competition.

    • sarfraz

      It is not the competition to blame rather Samsung. They produce crappy products at premium price. Their design and software experience are the worst one could have. So after having bad experience, no one is gonna buy Samsung product again. It’s my experience with Galaxy s3(cheap build quality +crappy Touchwiz).

      • namesib

        Yeah, all their profit is made by first-time buyers. It is completely inconceivable that people like what Samsung offers.

        /s

  • Mark

    Seriously doubt it buyer are starting to realize that you don’t have to pay a premium price to have flagship specs. Thats all thanks to all the Flagship killer companies. That is also the great thing about Android we get great competition between OEM’s and that bring better innovation at lower prices.

    • Karly Johnston

      Android flagships have little to do with it, they sell nothing next to Samsung. It is Apple killing them at the top and China biting them at the bottom.

      • Definitely

      • Anonymousfella

        Precisely. Apple is taking away the lion’s share of profits while the Chinese are selling in volumes.Tough situation for Samsung

      • Happy

        Did you even read what Mark said? Ha said “thanks to the Flagship killer companies”, not “flagship companies”. They sell excellent specs for mid- to low-tier prices. Xiaomi is taking sales even from Apple as Apple’s market share has very visibly shrunk since the appearance of Xiaomi.

        • jbelkin

          iphone 6 & iphone plus – 20 million sold in ONE WEEK.

      • Faux-News

        not true. Apple has been competing in Chinese market since last year. The current threat to Samsung is not from Apple but the Chinese phones, that is cutting down not just samsung sales but apples too. But yea Apple will be less threatened as they are a total different category of buyers and being a different OS, unlike Samsung where users don’t have much of difference over the flagship killer chinese phones that they should prefer Samsung over them.

  • Vinay Mallik

    To break in budget-friendly smart phones market it should compete with Motorola, Xioami, Huawei, Asus and Android One,this too difficult for Samsung , any way if Samsung can come up with magical device such as Moto G it can take market by storm.

    • dodz

      yeah that was i was hoping, I think samsung has the answer and the perfect phone, but it got covered by TOUCHWIZ.

      • Vinay Mallik

        I think TOUCHWIZ on android 5.0 performs better than KitKat.✌.

  • angel841

    Not to mention the pressure from the iPhone 6 and 6 Plus. Is not going to be a good year for samsung

  • Tzighi

    If they will change the desing,not all to look the same maibe they will do something

  • crutchcorn

    I’m sure their (or Apple’s or just China’s in general) child slaves feel the pressure too… :(

    • jbelkin

      Er, Samsung hired factories have been the ones cited. Apple openly audits and posts their audits.

      • crutchcorn

        Really? Huh… Did not know that. At any rate my point still stands about child labor in general (which is why I added in general)… However, I realize I shouldn’t’ve just said China, as this is a major issue around the world as well.

  • Matevz

    “the tech giant is finally doing something about losing so much marketshare. The company plans to release a budget-friendly line of smartphones with hopes of taking back the top spot in China, among other markets.”

    Like it will be their first bubudget-friendly smarphone. They already have like gazillion of those, LOL.

  • Bling Singh

    They Never had any premium brand reputation. In India they release their phones around 50000 rs but within a month of release you can see those products selling for 12 to 15 thousand rs discount. I really don’t think they should be considered Premium. Ohh yes to my friends out here I’m not an iSheep. I use 1+1

  • Shark Bait

    Maybe make phones at a sensible price and don’t look shit. Just a suggestion

  • Jayanand Supali

    If they keep holding on to their “Premium Brand” reputation and dont do something quick, there wont be a Brand left to attach that premium tag. All the Major Companies have seen the rise n fall eg Nokia, Motorola. due to such high headedness. Its always humble to bow down n go back to roots to save things. The best eg of that has to be Motorola. They went outa business but came back with some well priced phones. They should know that when people have options like xiaomi, lenovo or Huawei, who give them bang for bucks products. Thy do not have brand value which one tends to pay for when they buy products like LG or Samsung etc.

  • Aeolian

    20% off current handsets… including note 4?

  • beatles

    budget? All Galaxy phones looks budget!