Samsung's Head Of Mobile Division Optimistics Facing The Chinese Mobile Market, Offers Premium Products And Local Cooperation

JAKARTA - Samsung Electronics' head of mobile phone division said Samsung is "to the right direction" in China, the world's largest mobile phone market, as the company seeks to increase its lagging market share by increasing premium product offerings and collaborating with local content companies.

Third-party data shows that the world's largest smartphone maker is making a small increase in its market share which is still at a single digit in China, TM Roh said, head of mobile experience at Samsung Electronics.

"We are trying to achieve Chinese consumers with products that match the Chinese market, through optimizing software that fits the Chinese market, and I think the results are starting to appear little by little," the Roh told reporters this week.

Roh said the Samsung mobile phone business had set a target to "recover" the Chinese market through premium products and services such as folding phones, Samsung's new flagship which was launched on Wednesday 26 July, as well as strengthening cooperation with local content companies.

In 2013, Samsung was once the largest smartphone vendor in China with a market share of around 20%, but that figure slumped to 1% in 2018 and continued to decline, surpassed by Apple and Chinese vendors such as Vivo, Oppo, and Honor. However, as of March, Samsung has managed to recover a market share of 1.1%, according to Counterpoint data.

A premium smartphone demand trend that exceeds demand for simple models is likely to continue for some time to come, Roh said, as "the cycle of changing mobile phone users devices is getting longer in the global market."

"Now, they decided to buy the right product and use it longer, much more satisfying and profitable for their experience than to quickly replace it with new products," said Roh.

Regarding the foldable phone that Samsung introduced in 2019, Roh said Samsung was working to create a more affordable foldable model to expand its customer base, including in China and India.

Samsung, the world's largest smartphone manufacturer, will announce a complete second-quarter financial report on Thursday, July 27.