Original Title: Samsung wants to revitalize Chinese consumers with 5G: I don’t want you to think I want me to feel
Since 2018, Samsung has been calling out the slogan “Return to China”. This time, Samsung’s slogan is a little more “accurate”. Samsung’s first state-owned 5G mobile phone, Galaxy Note 10 + 5G, was released in Beijing Monday. “Samsung will rise again in China with 5G,” Samsung officials said on the spot.
At the same time, a set of “splashing water” data shows that in the second quarter of 2019, Samsung mobile phone market share in China was only 0.7%, almost to the point of “no drop”. Regarding 5G as a “life-saving straw” to revitalize the Chinese market, can Samsung become a “counter-attacker”? Can Samsung phones, which lost their sense of existence in the siege of national brands, revive the purchasing desire of Chinese consumers?
Wen | Chang Tao
Samsung Mobile: In China, I’m too difficult.
Samsung mobile phone in China’s market “difficult” is not a day or two.
According to public data, Samsung’s smartphone market share in China reached nearly 20% in 2013. Starting in 2014, the number began to decline gradually.
In 2014, Samsung Mobile’s market share in China was 13.8%. In 2015, there was only 7.6%. This figure was 5% by 2016. By the fourth quarter of 2017, Samsung’s share of China’s smartphone market had dropped to 0.8%.
In the past two years, Samsung’s share of China’s smartphone market has been hovering around 1%. According to the latest data released by Strategy Analytics, Samsung’s smartphone sales in China in the second quarter of 2019 have shrunk to 700,000 units, and its market share has dropped to 0.7%.
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On the 22nd, Sino-Singapore Jingwei visited some mobile phone stores to learn about the sales of Samsung mobile phones online and offline. In a large chain of mobile phone stores, Zhongxin Jingwei has not seen the traces of Samsung brand mobile phones in many counters.
Staff in the store said that because there were fewer people consulting and buying Samsung mobile phones, they did not display related products. If you want to know about Samsung mobile phone products, you can use the store’s small program.
“There is no market for Samsung mobile phones, and after-sales maintenance is particularly difficult. In addition, the product cost-effective ratio is not particularly high, similar configuration products, Samsung will cost 1000 yuan. The staff member said.
Why is Samsung “too difficult”?
The Note 7, released in August 2016, was considered Samsung’s trump card in curbing the decline in China’s market share since 2014, but because of successive battery explosions, it suddenly pushed Samsung to the forefront of the storm.
Since then, Samsung’s extremely unprofessional practices in China, as well as the behavior of throwing pots to consumers, have caused great dissatisfaction among users, and Samsung’s reputation in the Chinese market has declined sharply, so the desired abacus has not worked.
However, Samsung has never abandoned the Chinese market. At the beginning of this year, Quan Guixian, the president of Samsung Electronics Greater China, who was entrusted with a heavy responsibility, made a pledge: “In 2019, Samsung will return strongly with innovative technology and products.” The theme of the conference was “Samsung’s Return to the Battlefield”.
Since then, Samsung has proved itself on the way back through a series of operations: not only has it reconstructed the marketing system in Greater China, adopted measures such as price reduction, but also brought innovative products such as 5G and folding screen mobile phones, paving the way for the Chinese market.
But from the second quarter of this year’s data and market conditions, Samsung’s move did not play a very effective role.
In an interview with Sino-Singapore Jingwei, Sun Yanyao, president of the First Mobile Phone Industry Research Institute, said that Samsung had put forward the goal of “returning to China” at the end of last year. It can be seen that in March and April this year, Samsung took more effective measures. Especially after the release of Samsung Galaxy S10, it even set off a “Xiaoyangchun” in the Chinese market. But in the second quarter, China’s smartphone market quickly entered the competitive environment of high distribution and low price. Domestic mobile phone manufacturers increased their control over the channels, making Samsung slowly regain its previous market share in this quarter. The main problem behind this is the product structure.
“If Samsung wants to get rid of the current situation, the first point is that it must launch more star models for the Chinese market; the second point is that it should adopt more detailed channel strategy, cultivate deeply and meticulously, and penetrate into the third and fourth-tier urban market like Huami OV.” Sun Yanfei said.
03 bet 5G, can Samsung counter-attack?
At present, domestic mobile phone manufacturers Huawei, ZTE and vivo have released 5G mobile phones one after another. It is worth mentioning that compared with the price of ZTE’s first 5G mobile phone (Axon 10 Pro) at 4999 yuan and Huawei’s 5G mobile phone (Mate 20X) at 6199 yuan, the price of iQOO Pro for vivo’s first 5G mobile phone is set at 3798 yuan. This seems to herald a price war for 5G mobile phones sooner or later.
Samsung’s Galaxy Note 10 + 5G is priced higher than Huawei and ZTE’s previous 5G phones and the later vivo 5G phones. The official price of the 12G + 256G version is 7999 yuan.
Samsung officials stressed that Galaxy Note 10 + 5G is a purely 5G network original design of a mobile phone, its system, heat dissipation, charging and many other aspects are specially designed for 5G network optimization.
In fact, Samsung’s slogan of “Re-rising in China with 5G” is closely related to its layout in the 5G field in recent years. Zhang Daijun, president of Samsung China Research Institute, mentioned that in fact, as early as 2009, Samsung began to study 5G network.
In an interview, Kwon also revealed that Samsung will launch at least 3-4 5G mobile phones in the second half of this year, and will have 5G layout in low-end, flagship and ultra-high-end product lines.
So, can Samsung take advantage of 5G to counter-attack the Chinese market?
Sun Yanchao said that Samsung is not inferior to Huawei in terms of 5G industry chain and overall layout, and even stronger in the field of smart terminal components than Huawei, which is Samsung’s advantage. In addition, Samsung mobile phones do go faster in terms of technology maturity, and Samsung will launch more 5G mobile phones in the next half year, which means that Samsung wants to form a high-end product line in 5G mobile phone layout, which should produce good results.
“In the Chinese market, 5G is a very good opportunity for Samsung, but the market position will not be”counterattack”because of a product. Samsung’s market share in China will improve to a certain extent after going through such a gateway as 5G. Sun Yanfei said.
Fu Liang, a telecom analyst, told Sino-Singapore Jingwei that in the 5G era, Samsung mobile phones are still difficult to reverse in the Chinese market. “Because China’s mobile phone companies already have 5G competitiveness, not only’Huami OV’, but also Yijia, Lenovo and ZTE are actively working. There’s not much room for Samsung. Fu Liang said.
Sun Yanyao believes that there are still many uncertainties about whether mobile phone manufacturers will shuffle in the 5G era. “At least today and next year, the overall mobile phone market will not change much. But it’s hard to say whether there will be a big change in the mobile phone market by 2021. At present, some small and medium-sized mobile phone manufacturers are already developing 5G mobile phones, and some new brands will appear in the mobile phone market next year.
(Intern Yang Jiahong also contributed to this article)
Cover and Introduction Map: Data Map, Photographed by Yang Jiahong of Sino-New Zealand Longitudes and Latitudes