April 17, 2024

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[THE INVESTOR] Samsung Electronics will retain the No. 1 spot in world smartphone market in the third quarter but will see a drop in its share to under 20 percent, a global tech analysis site said in its latest report.

The same analysis released by TrendForce expected fast growth by China’s Huawei, which was projected to solidify its second-place standing and widen the gap with third-place Apple.

TrendForce expected the Korean company to produce 70 million smartphones in the third quarter ending in September, down from 74.4 million in the previous quarter. The market share for the latest quarter was estimated at 19 percent, down from 21.2 percent in the preceding quarter.

“Although its Note 9 flagship series has been launched earlier to boost the sales, the models are not expected to trigger much demand as the series‘ overall specifications are not much different from the previous generation,” the report said.

The Korean firm faces two problems in its business, according to TrendForce. Unlike Chinese rivals who can actively advance into lower end and emerging markets, it is difficult for Samsung to develop new business fields because it already has a large presence at all levels. Also, Samsung’s market share in China has dropped to around 2 percent due to ferocious competition with China’s homegrown brands, it said.

Huawei, after overtaking Apple in the second quarter, is expected to remain the world’s second-largest smartphone vendor again in the third quarter, the report said. “Despite Apple’s three new models to be launched this fall, the production of new iPhones is mainly scheduled in the fourth quarter, so the new series would make a limited contribution to Apple’s growth in the third quarter,” it said.

The flexible pricing strategies that focus on a high performance to price ratio and availability of a wide range of products and prices make Chinese brands successful, the report noted.

Korea’s second-largest tech company LG Electronics was forecast to produce 12.8 million smartphones in the third quarter, up 10 percent from the preceding period, due to holiday sales in North America at the end of the year.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)