Inside the Galaxy: How Samsung is losing its lead in key global markets

The_King · August 13, 2021

Samsung makes many of the best Android phones, and with over 300 million sales a year, it is the largest smartphone maker in the world. While Samsung's lead may have been unassailable a few years ago, that's not the case in 2021. Missteps with the Galaxy S series and slowing demand for flagships in general have eroded profits from Samsung's mobile division in recent quarters, and it is facing an increased challenge from Chinese rivals.

Although Samsung is in a dominant position in North America, that's not true in other markets. Chinese brands in recent years — including Xiaomi and BBK Electronics — owned OPPO and Vivo — have managed to dethrone Samsung in key regions, including China, India, and even Europe. As a result, Samsung's position as the world's largest smartphone manufacturer is under threat.

The latest data from Counterpoint Research bears this out: Samsung sold 57.9 million phones in Q2 2021, with a global market share of 18%. Xiaomi came in second with 52.5 million sales and a 16% market share, but when it comes to annual growth, Samsung is at a meager 8%, while Xiaomi stands at 82%.

In North America, the smartphone market share is predominantly split between Samsung and its biggest competitor Apple. Per Q1 2021 market share data from Counterpoint Research, Apple's share of the market was at 55%, while Samsung accounted for 28%.

Overall, Samsung doesn't prioritize one region over another, IDC's research director on worldwide device trackers, Nabila Popal, said in an interview. "As a company, you want to have large centers, and you will always focus on driving share. (Samsung) measures their own performance based on volume share versus value share," she said. "For them, any region is important where they can drive quality."

The Asian smartphone industry is heavily influenced by Chinese manufacturers, and Samsung has seen its market share in this region erode over the last five years. For instance, Samsung's market share in China has been under 1% for some time now, and in India, the brand is in danger of losing out on its second position to Vivo and Realme.

The dominance by brands like Xiaomi, Realme, Vivo, and OPPO is because of their focus on the budget segment. Popal says that 87% of smartphones in APeJC (Asia Pacific excluding Japan and China) retail for under $400, with the sub-$200 accounting for 67%. In the first half of 2021, the market share for Chinese brands in the sub-$400 segment is at 67% in the region, while Samsung stands at 20%.

As is increasingly becoming the case in other regions, Xiaomi is in the overall lead in Asia. "Over the years, Xiaomi's share has grown from 17% in 2018 to 21.5% in 2021H1, closely narrowing the gap to leader Samsung, whose share now is 22.3% in 2021H1 (from 27% in 2018).