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| A visitor to My Dihn Stadium takes a selfie on Samsung Electronics' Galaxy Note 9 smartphone in Hanoi, Vietnam, Aug. 18. / Courtesy of Samsung Electronics |
By Baek Byung-yeul
Samsung Electronics has been struggling with lackluster sales of its smartphones in Southeast Asia as Chinese competitors attract more consumers with a wider range of budget phones, a global market researcher said Friday.
According to data compiled by industry tracker Canalys, Samsung failed to see growth in seven countries in the region and especially suffered double-digit declines in Thailand, the Philippines and Malaysia. In Thailand, Samsung had a market share of 22.4 percent, maintaining its No. 1 position, but failed to reach 1 million in sales there, with numbers declining 44 percent year-on-year.
Chinese phone makers Oppo, Vivo and Xiaomi are showing their strength in Southeast Asian countries, with market researcher IDC, stating the three sold about 500,000 more smartphones than Samsung in the five largest markets in Southeast Asia last year.
Shengtao Jin, the research firm's analyst said "Oppo's performance was most notable, as it was the only vendor that appeared in the top three of all five of the largest markets ― Vietnam, Thailand, Philippines, Malaysia and Indonesia."
The Chinese firm produced its best performance in the Philippines in the third quarter, recording a market share of 20 percent, defeating local phone maker Cherry Mobile, which had 19.3 percent. The report said Samsung has also had difficulties in maintaining its leadership in the Philippines, which had been among its brightest spots worldwide over the last two years.
For smartphone makers, the Southeast Asian market is regarded as an important one, following India and China. The region accounts for about 8.5 percent of the world's population but had a 7.5 percent share of the entire smartphone market. Due to the trade dispute between the United States and China, sales of smartphones fell by 3 percent in the region.
In order to continue to take leadership in Southeast Asia, Samsung said it would launch more competitive budget smartphones, unveiling its Galaxy A9, a phone equipped with four rear cameras, in Malaysia.
"Samsung has released new devices with competitive specifications and is revamping its go-to-market strategy, giving due importance to online retailers and bringing the fight back to Chinese vendors," said Jin.
