- Samsung’s market share forecasted to shrink from 20.5% to 19.2% globally.
- Competition from Chinese device makers among the most significant factors for the drop.
- Despite shipping fewer devices, Samsung is still expected to remain as the largest phone manufacturer.
Samsung is having a pretty good year. It released the Galaxy S8, Galaxy S8 Plus, and Galaxy Note 8 smartphones, which are among the best on the market. It successfully rebounded from a disastrous 2016 when it recalled the Galaxy Note 7 and doubts surrounded the future of the Note lineup. Despite all of that momentum, Samsung’s market share globally will decrease in 2018.
Right now, the company accounts for 20.5% of new phones sold globally. If predictions from Strategy Analytics (via The Korea Herald) hold true, that number will drop to 19.2% in 2018. That 19.2% would translate to the shipment of 315 million units worldwide.
So, why the drop? The answer appears to lie in China. Chinese smartphone makers like Huawei, Xiaomi, and OPPO continue to eat into its sales. The phones that these companies produce are often far less than the cost of Samsung’s flagships while providing similar build quality and software experience.
Samsung is not only facing fiercer competition in the flagship segment, but for mid-tier and budget devices as well. Good smartphones are getting cheaper as the price of components falls over time. This allows companies to build inexpensive devices that might not be as powerful as a flagship, but can come close.
This is the first time that Samsung will post a decline in smartphone shipments since 2016 when it recalled the Galaxy Note 7. Despite the decrease, Samsung will remain ahead of the pack. It will be followed by Apple (14.3%), Huawei (10%), and OPPO (7.8%).
What do you think about Samsung’s declining market share? Is the company in trouble? Let us know down in the comments.