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Samsung Maintains Lead in Global Smartphone Market

Samsung tops shrinking global smartphone market in Q1 2018

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Samsung
The South Korean tech giant also wants to focus on consumers' ease of use and convenience.

As global smartphone market declined for the second successive quarter in the first quarter of 2018, Samsung remained the leader, shipping 78 million devices and capturing 21.7 per cent market share, Counterpoint Research said on Wednesday.

Samsung shipments grew 5 per cent with the launch of its latest flagship, the Galaxy S9 and S9+.

Apple which surprised the analysts with a strong fiscal 2018 second quarter results, shipped 52.2 million devices, reporting 14.5 per cent market share at second spot.

According to Counterpoint’s Market Monitor service, global smartphone shipments declined 3 per cent annually in the first quarter of 2018.

Top 10 players now capture 76 per cent of the market, thereby leaving over 600 brands competing for the remaining 24 per cent of the market.

“The waning smartphone demand is due to a slow-down in developed markets where replacement cycles are lengthening with overall smartphone features and design reaching its peak,” Tarun Pathak, Associate Director at Counterpoint Research, said in a statement.

Samsung
Representational image. Pixabay

However, emerging markets still offer a sizeable opportunity for OEMs to expand and grow as smartphone penetration by users in still around 45 per cent.

“The average selling price (ASP) of smartphones is increasing, too, in emerging markets with users upgrading from entry level to the mid smartphone segment,” Pathak noted.

Huawei with 10.9 per cent and Xiaomi with 7.5 per cent market share followed Samsung and Apple.

OPPO with 6.1 per cent share was at fifth place.

“The saturating China smartphone market is forcing the Chinese smartphone players to invest and expand beyond their home market. The efforts have been realised as the performance of Chinese brands in MEA, Europe and the rest of the Asian markets has been strong,” said Research Analyst Shobhit Srivastava.

Also Read: Samsung Net Profit Rises 52% in Q1

The China market decline in Q1 2018, affected the overall growth of some of the key Chinese brands including OPPO and Vivo. Both saw a decline in the quarter as a result of the China market slowdown.

Apple grew 32 per cent (YoY) in China due to strong performance of its iPhone X.

While the promotions were not aggressive for the iPhone X, except in operator channels, its demand remains healthy in the market. (IANS)

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Samsung Display Cuts LCD Production to Focus on QD-OLED

Its home rival LG Electronics Inc. has also been shifting its focus from LCD to OLED panels to boost its bottom line amid a flood of cheap Chinese LCD panels in the market

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samsung
To get ahead in the fast-changing tech industry, Samsung said it will expand investment in burgeoning tech segments to propel growth. Wikimedia Commons

Cutting down on the production of liquid crystal displays (LCD) by Samsung Display Co., in response to dropping profits, can also be seen as the company’s move to shift its focus to a new type of organic light-emitting diode (OLED) panel, industry officials said on Wednesday.

The display making subsidiary of Samsung Electronics Co. has trimmed LCD production at its Asan factory, about 100 km south of Seoul, while preparing a large-scale investment for Quantum Dot (QD) OLED panels, a type of hybrid display that uses both OLED and quantum dot technology, according to them.

“We have adjusted production in some of the LCD lines due to rising deficits amid a global supply glut but haven’t yet confirmed investment plans for QD-OLED panels,” a Samsung Display official said, asking not to be named, Yonhap news agency reported.

“It has become an inevitable industry trend as other LCD makers are decreasing supplies amid a sharp fall in prices.”

Some industry watchers speculated that Samsung will soon stop some LCD lines and announce an investment plan for QD-OLED panels to focus on a more profitable segment.

Samsung Display, a leading smartphone OLED panel maker, already uses its QD technology for premium TVs and is well-positioned to develop the new type of display.

samsung, better selfie camera
Samsung declined to disclose its sales target for the new Note series, but said it expected to achieve higher sales volume than the predecessor Note 9 models. Pixabay

“Samsung Display is expected to phase out its LCD line at its Asan factory, realign its large display business and speed up its push for QD-OLED ” Kim Dong-won, an analyst at KB Research, said noting that QD-OLED investment will be over 10 trillion won ($8.3 billion).

If the investment plan is confirmed, it would be the first in seven years for Samsung Display to produce OLED panels for TVs. The firm had supplied 55-inch OLED panels to Samsung Electronics in 2012, but it halted production in the next year due to a low yield rate.

Samsung Display suffered a deficit of 61 billion won on sales of 11.8 trillion won in the first half of this year, its financial report showed.

Also Read: Liquidity Stance Moved to Positive by RBI

Its home rival LG Electronics Inc. has also been shifting its focus from LCD to OLED panels to boost its bottom line amid a flood of cheap Chinese LCD panels in the market.

In a conference call last month, its display making unit LG Display Co. said it has transformed two of three of eighth-generation LCD lines to OLED manufacturing and is considering halting its last remaining line depending on the market situation. (IANS)