South Korean giant Samsung has had a tough time in the Chinese smartphone market in the past few years. The company has faced intense competition from some of the local players like Huawei and Xiaomi. Samsung’s market share took a plunge to 1 percent in one of the world’s largest smartphone markets.
However, the same rivals of Samsung, that have diminished the standing smartphones of the company, might also become the company’s way back to the Chinese market with the help of components. On August 12, 2019, Samsung introduced what it claims to be the industry’s first 108 megapixel image sensor for smartphone cameras which have a picture resolution equivalent to a high-end DSLR camera. The sensor will be featured on the upcoming smartphone of Xiaomi in 2019.
The new launch has also hinted about Samsung’s strategy of winning market share in the China handset industry with the help of innovative smartphone parts. Xiaomi was earlier using sensors of Sony. Meanwhile, Samsung has managed to score their wins including the Chinese consumer electronics firm Oppo, that had recently decided to use the South Korean firm’s image sensors. Neil Shah, the research director at Counterpoint research while talking to a leading daily said, “Samsung’s market share in China is just 1%. However, with its strong component business, it is gaining foothold in China”.
Shah added that with the help of OLED display technology and memory chip storages like DRAM and NAND, Samsung has grown significantly, courtesy to the growth of Xiaomi, Oppo, Huawei, RealMe and OnePlus. The research director added, “Now it is rapidly increasing share of its other components … across Chinese players.” Focusing on the Chinese firms is a good strategy for growth as three of the world’s top five biggest smartphone players by market share, are from China. And in the domestic market, out of five, four players are Chinese.
photo Credits: MensXP