Samsung Electronics to solidify the world's No. 1 position in 2022 through the success of its ‘foldable phone’

[MoneyS Report - Samsung sweeps the world market for foldable phones (1)] Breaking through Chinese market risks with new products

Samsung posted the robust sales as Galaxy Z Fold 3 and Galaxy Z Flip 3(photo) made global big hit. /Photo=Samsung Electronics

■Article Order
①Samsung Electronics to solidify the world's No. 1 position in 2022 through the success of its ‘foldable phone’
②Samsung Electronics defeats 'Chinese fake foldable phone' with super-gap technology
③Samsung's foldable laptop… another success story to come?

Samsung posted the robust sales as Galaxy Z Fold 3 and Galaxy Z Flip 3 made global big hit. The Korean giant is highly likely to secure the top place again this year but will have no time to celebrate the zenith as fierce competition with its archival Apple becomes intense, while low-price Chinese manufacturers chase closer.

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Samsung, the world's no.1, soars with foldable phones

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Galaxy Z Flip 3(left) and Galaxy Z Fold 3 displayed at the Samsung d'light shop located at Seocho-gu, Seoul. /Photo=News1

Samsung Electronics defended No.1 rank as the world's largest smartphone vendor in 2021 by a narrow margin of 1.7%, with Samsung's 18.9% vs Apple's 17.2%, according to Counterpoint Research. The subsequent three in the global smartphone makers were all Chinese, Xiaomi·Oppo·Vivo, with a share of 13.6%, 11.4% and 9.6%, respectively. 

Samsung's such performance is significant as it outscored Apple, which was considered the leader in the smartphone industry. Samsung's accession to the top place was made possible, largely thanks to its foldable phones, sold last year. It is reportedly known that Samsung sold 8 million units last year, 4 times more than the year of 2020. 

In fact, Samsung's achievement even exceeded the forecast of the Counterpoint Research, which predicted that, in 2021, the market of foldable phones would grow in three folds, compared to 2020.

Galaxy Z Fold 3·Galaxy Z Flip 3, foldable phones respectively, are the fast growing phone category in the global market, and the demand was so high that the whole quantity, sold during the year 2020, was to astonishment of industry, sold in one month in 2021. Meanwhile, about a million units of Galaxy Z Fold 3·Galaxy Z Flip 3 were sold in the Korean market alone. 

The South Korean conglomerate had produced 69.3 million units during the third quarter, up 20% YOY. Samsung retained the number one spot with shipments, reaching 58 million and 76.8 million units respectively in Q2 and Q1 in 2021. Global smartphone market is expected to grow 7.2% to reach 1.49 billion units this year, according to Counterpoint. Samsung is reportedly forecasted to account for 18% of global market share by selling 284 million phones.

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Samsung will not leave China. It will challenge again.

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Samsung Electronics is in a situation where it is necessary to expand its share in the Chinese market in order to maintain its No. 1 position in the global smartphone market. /Photo=News1

However, Samsung currently struggles at China. Even Galaxy Z Fold 3·Galaxy Z Flip 3 couldn’t help. Samsung once reached a market share of 25% in China back in 2013~2014, but its market share saw a gradual decline as anti-Korean sentiment arose as a consequence of diplomatic rows over THAAD issue(U.S. Army's anti-ballistic missile defense system, deployed in Korea), while, to make matters worse, its local price policy did not work.

Thus, Apple and Chinese outlets have reportedly garnered a bigger portion in the Chinese market, gradually seizing the slot in the market where Samsung once occupied. 

Roh Tae-moon, chief of Samsung Electronics' mobile division, said, "China is a very tough market" during his visit to Las Vegas, CES 2022. "Rather than being in a rush, we will prepare well and make a progress little by little" he added. China presently accounts for 25% of the world's smartphone shipments, and is home to about half of the shipments of 5G smartphones. Thus the importance of Chinese market lies as this market will decide who will become No. 1 in the industry. 

Han Jong-Hee, Vice Chairman·CEO and Head of Device eXperience Division at Samsung, declared that he rolled up his sleeves to lead a in-house task force to regain the ground lost in China. 

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"Breakthrough that will herald a new era"

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Image of Samsung Galaxy Z Flip3 Bespoke Edition. /Photo=Samsung Electronics

Samsung aims to retain its top place in the industry through new products. The Korea's electric power house is hosting a Galaxy unpacked event on February 10th of this year, where it will unveil the Galaxy S22. 

This unpacked event draws attention as Samsung reportedly is launching its new Galaxy series, versatile with the stylus from the Note-series. The S22 is reportedly a signal for an 'end' of Note-series. Expectations for the unpacked event is on the rise, as S22 is a mixture of its two whiz-bang gadgets.

In fact, Galaxy note series had fans, who are in sheer pursuit of its unique stylus called 'S Pen'. S-pen addict users even wrote letters to Samsung to frustrate any phase out, as rumors go suggesting that the planned obsoleteness of the Note series spread. It is estimated that the new model will be the de facto replacement for the Notes, which didn’t roll out a new model last year.

"It will be the most attention-receiving product in the Galaxy S series" said Chief Roh. "We will continue, without let-up, to explore the journey of success" he stressed. "Best strategy for Samsung would be targeting the customers, willing to purchase state-of-the-art premium products", Kang Min-su, researcher at the Counterpoint, explained.