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Samsung is losing out its battle in China

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Samsung has lost its share in China’s phone market in a worrying way. South Korea giant sold only 700,000 units in the Asian country in the third quarter of this year, according to recent technical data.

Huawei has strengthened its position as the second largest mobile phone maker

Samsung’s share of the phone market in China was only 0.7 percent, and the performance is the worst in any of the world’s most populous countries, according to market research firm Strategic Alliance. Samsung took 19 percent of the Chinese market with sales of around 18 million devices back in 2014. But since then sales have been going down as local tech rivals make phones that are much cheaper and just as good and sometimes better than Samsung while Korea remains in bad odor with the Chinese government and state media.

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Samsung did not lose to Huawei only when it finished 11th, but the South Korean company was behind other companies such as Oppo and Xiaomi. The main problem for Samsung was in the middle segment, in which the series Galaxy A and Galaxy J losing ground under pressure from Chinese manufacturers. Not surprising, because Chinese corporations offer users more powerful devices at an affordable price.

Samsung’s share of the handset market in China was 19 percent in 2014 and sales reached 18 million, but the rise of local companies led to Samsung’s decline.

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Chinese companies have bet on advanced technical advantages and premium rates to win more customers, while Samsung and Apple have been offering their new devices at high prices.

Huawei had previously applied to Apple Inc. earlier in the phone sales, but Samsung is still the first in the world even if it saw an unprecedented decline in its share in China.

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In India, Samsung was a market leader but also got edged thereby Xiaomi in the past several quarters. But Samsung hopes Galaxy S10 will be a success otherwise Samsung’s crisis are inevitable. DJ Koh, CEO of Samsung’s smartphone business is going all-in to find a way to turn the mobile division around. Otherwise, the company is going into a downward spiral, and he might lose his job as well.

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