Thursday, February 26, 2015

Tough Times for Samsung in China

2014 was certainly not a good year for Samsung, and the Chinese market which is the world's largest market for smartphones, proved to be both daunting and difficult for the South Korean company. 

According to research firm IDC, overall 420.7 million smartphones were shipped  to China in 2014. In terms of shipments by vendors, Samsung was reported to have slumped 22.4% for 2014 versus 2013. 

CCID Consulting, China's biggest research and consulting company, however, pointed out that Samsung lost 31.5% of their market share in China in 2014. 

It doesn't matter which numbers we trust the fact is that Xiaomi had overtaken Samsung in China. And if this decline persists into 2015, the latter will probably plummet further down the ladder.

The Xiaomi success can be attributed to their low prices and online flash sales, says IDC. Last month, the company’s vice president of international Hugo Barra told TechCrunch’s Jon Russell that Xiaomi keeps their prices down through a combination of a smaller smartphone portfolio coupled with longer average selling time per device.

The other brands such as Lenovo, Huawei, Coolpad, Xiaomi, Meizu, and their fiercest rival, Apple, are steadily tightening the noose on Samsung.

China's Smartphone Shipments by Vendors, 2014 versus 2013

For sure, it is tough times for Samsung in China.

To further compound their misery, there have been reports that emerged last month that said that Apple have pulled ahead of Samsung as the top smartphone vendor in the world, thanks to the success of iPhone 6 and 6 Plus.

On Wednesday, my SUBS students from the January 2015 cohort presented their works.

This time around, only twelve commercials were produced and I am only going to feature the Top 5 in this post. The selected video clips have been examined and scrutinised by a panel of three judges from SUBS (i.e. Sri Bala, Derek Ong and I):

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