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Samsung wishes to take benefit of Huawei sanctions to grow its smartphone sales next year
Samsung has raised its target for next year’s global smartphone market share by 3 percentage points from this year. It continues to be the leading smartphone seller in the world. Though, the company does not want to rest on its crowns. It needs to increase his dominance at the top.
The global smartphone sales are projected to reach 1.52 billion units next year and the strategy is 21.9%. This market share target is 2.9 percent higher than the 19% market share projected this year. To this end, Samsung is said to be focused on realizing Huawei‘s sharp decline following US government sanctions.
Samsung wants to take over more of the global smartphone, especially by realizing the market share that Huawei is losing. For instance, Huawei was poised to overtake Samsung as the leading smartphone vendor. It has achieved huge growth in major markets. There are also rumors that Huawei smartphones may be officially sold in the United States.
Samsung has a global market share of 19% this year. The company expects to increase this by almost 3 percent to 21.9 percent next year. It aims to realize Huawei’s declining market share so that it can grow on its own.
Samsung estimates that global smartphone shipments will reach 1.523 billion units next year. It believes demand will increase as the world moves beyond the COVID19 pandemic and smartphone replacement cycles overlap. The other Chinese smartphone makers are expected to realize the market share that Huawei is losing outside of China.
Samsung is also planning to launch new products every month from January to May next year. The Galaxy S21 FE will first arrive in January, followed by the Galaxy S22 lineup in February. The Galaxy A33 and Galaxy A53 are expected to arrive in March, the A23 in April and the Galaxy A73 in May.
Samsung intends to produce 20 million units in its Core Galaxy A series next year. These will be its primary weapon in the fight to win more market share.
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Samsung remained the king in the Q2 2024 market, but Apple and Xiaomi are getting closer. IDC market research data shows that Samsung led the worldwide smartphone market in the second quarter of the year and Chinese brands scored rapid growth.
According to IDC, Samsung sold 53.9 million devices in the second quarter. The company occupied an 18.9% market share internationally. The company has slightly improved its sales share up from 53.5 million units in the same period last year.
The data suggests that Apple ranked second in terms of global volume sales. The iPhone maker shipped 45.2 million devices in Q2, 2024. It captured a market share of 15.8%, a modest increase from 44.5 million shipments in the second quarter of last year.
Third comes Xiaomi. The Chinese brand saw massive growth in sales year over year. It had sold 42.3 million smartphones in the second quarter alone. It’s a big jump from 33.2 million units shipped in Q2 2023, becoming a potential threat to Apple and Samsung.
Apart from this, Vivo also recorded significant growth in the global market. The company’s year-over-year growth in Q2 was 21.9%, with sales listing 25.9 million units with a market share of 9.1%. The growth percentage shows that aggressive marketing and boasting competitive specs into devices is paying off.
Samsung, Apple’s game isn’t over…
Last week, Samsung launched its new foldable phones, releasing on July 24, 2024. Apple, on the other hand, is expected to launch new flagship iPhones in September. It means, Samsung will enjoy the third quarter as well. The fourth quarter might be of Apple as iPhone sales would sharply grow in the global market given the new lineup release.
Samsung is now preparing to unveil new FE products later this year, followed by the S25 series in early next year. Chinese brands are expected to debut their latest flagships in the last quarter of this year, while Google Pixel phones are also coming in August.
Samsung today announced provisional sales and profit results for the second quarter. Samsung formally announced the provisional/predicted sales and operating profit, suggesting a massive profit boom in Q2, 2024 given the AI memory semiconductor rise.
In Q2, 2024, Samsung sales provisionally increased by 2.89% and operating profit by 57.34% compared to the previous quarter thanks to AI boom. Besides, the sales climbed by 23.31% and operating profit by 1,452.24% compared to the same period last year.
The company expects sales of 74 trillion won and operating profit of 10.4 trillion won on a consolidated basis. While these results are not final, there won’t be much change in the final result when it comes out. Samsung had a pretty profitable period in the second quarter.
Samsung in Q2
- Consolidated Sales: Approximately 74 trillion Korean won
- Consolidated Operating Profit: Approximately 10.4 trillion Korean won
The Korean tech giant is currently facing yield issues in its second-generation 3nm process. The flagship Exynos processor is unlikely to be commercialized this year. It would lead the Mobile business to face additional burdens due to rising prices of Snapdragon chipsets.
Meanwhile, Samsung is focussing on HBM (high bandwidth memory) semiconductors. HBM is a key player in artificial intelligence servers and data centers. The booming AI market will directly benefit Samsung’s semiconductor business.
Samsung ranked first in market share in the global smartphone market in Q3, 2023. TrendForce report says that Samsung led the global Q3 smartphone market, recording a market share of 19.5%.
Overall production in the third quarter increased by 11.5% compared to the previous quarter to 60.1 million units. During the same period, Apple’s production increased by 17.9% to 49.5 million, thanks to iPhone 15.
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Third place was taken by Xiaomi (13.9%), followed by Oppo (12.6%) and Transion (8.6%). 6th place is Vivo (8%). Meanwhile, global smartphone production reached 308 million units, a 13% increase compared to the previous quarter and a 6.4% increase from the previous year.
Huawei’s re-entry into the flagship smartphone market targeting Apple has had a significant impact in China. Huawei is aiming to expand its high-end flagship series, focusing on the Chinese domestic market next year, so Apple “We plan to attack directly”.
// Source