South Korea's Samsung Electronics is shaking due to the fire problem of the smartphone Galaxy Note7. According to the financial report released on October 27, the operating profit of the smartphone business in July-September 2016 decreased by 96% from the same period of the previous year to 100 billion won (about 590 million yuan), a record low. Samsung has stopped the shipment of Note7, hoping to recover the damaged brand image by thoroughly identifying the reasons, but now there is a new existence that will stop the Samsung mobile phone from moving forward in the future. That is the rapidly growing Chinese emerging mobile phone brands "OPPO" and "vivo".

A new leader in the Chinese smartphone market

In the smart phone market in China, companies are experiencing fierce competition. According to data from IDC, a US survey company, OPPO ranked second with 16.2% from April to June 2016, while vivo was followed by 13.2%. The market share of the two brands was about 7% in the same period last year, but the rapid development of weapons with excellent sound performance and active publicity of popular Korean singers. It has greatly surpassed Xiaomi (9.5%), which ranked first in terms of share in the same period last year, and is approaching Huawei's technology (17.2%), which is currently ranked first.

“oppo”, “vivo” and Samsung’s mobile sales counters in Guangzhou’s electrical stores

Another survey shows that OPPO has jumped to the top in terms of recent share rankings. According to statistics from the Hong Kong market research company Counterpoint Technology Market Research, from the market share of July to September, OPPO ranked first with 16.6%, while vivo was followed by 16.2%. These two brands are becoming the new leader in the Chinese smartphone market, which accounts for 30% of global sales.

In fact, until recently, it was said that many people in China thought that “the mention of smartphones is Samsung”. By the end of 2013, Samsung had a market share of about 20%, but in 2014, Xiaomi took the first place with the help of low-cost smartphones. In the fall of 2014, with the US Apple iPhone 6 officially landing in the Chinese mainland market, Xiaomi fell out of the top five. After that, it failed to regain more Chinese consumers.

Samsung’s market share in India has also been “eating”

Samsung has been a presence in the world as a top 2 player with the United States, but the Galaxy brand has been damaged due to a fire in Note7. Samsung said that "the impact of (accident) is expected to continue until next spring", but unlike the previous "low-cost smartphones" in China, OPPO and vivo are considered to have advantages in the development of high-priced models.

On the one hand, Huawei and Xiaomi, which are being chased by OPPO and vivo in the Chinese market, are strengthening their offensive as India in the potential market. This is also taking Samsung's market share in India. In this sense, even if you rely on the strong semiconductor business to make up for the decline in the smartphone sector, and barely overcome the predicament, it may be difficult to stop the strong momentum of the rising Chinese smartphone.

Japan Economic News (Chinese version: Nikkei Chinese Network) Kishimoto Marimi

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