text/Wang Xinxi
A few days ago, Chaodian Think Tank released a statistical data, which showed that the total sales of Samsung among the best-selling mobile phone models in the first half of 2022 were 111 million units. Among them, there are 26 best-selling models, the first three models sold the Galaxy A13, with sales of 11.36 million units; Galaxy A12, with sales of 10.56 million units; and Galaxy A32, with sales of 9.83 million units.
Chaodian Think Tank's statistical method is to divide global smartphones into five price segments at the first order of US$200; use five price segments to select the top 20 best-selling models respectively; summarize and form the global best-selling smartphone brand. Based on this, Chaodian Think Tank analyzed and counted that Samsung ranked first in the world among the world's best-selling smartphone brands in the first half of 2022.
Judging from past data, Samsung mobile has ranked first in global sales for nine consecutive years. In 2022, when smartphones show a global decline, why Samsung can still be the world's first place? The reason behind this is worth our deep consideration.
Samsung mobile phone number one in the world. How did it do it?
According to statistics from Chaodian Think Tank, Samsung lost to Apple in the summary of the top 20 best-selling models of $600-799 and 800+ USD, ranking second;
ranks first in the summary of the top 20 best-selling models of $20-199, $200-399, and $400-599.
From the price segment, Samsung has a complete product layout and broad model coverage in the three price segments of high, medium and low. It has led the sales in the mid- and low-end markets, and lost to Apple in the market of only 4,300 yuan or more. However, Samsung is not weak in the high-end market overall, ranking second, because Apple is too strong in the high-end market.
plus Apple has firmly settled in the high-end market in the Chinese market where Samsung is completely absent, and has almost eaten up most of the market cakes that Huawei have been vacated. Judging from the data, in the global high-end market outside China, Samsung still has the strength to fight Apple. This makes us think about how Samsung does it?
From the perspective of subjective capability factors, Samsung's domestic mobile phones do not have vertical integrated supply chain capabilities. Samsung controls the design and manufacturing capabilities of core electronic components of mobile terminals such as processor chips, memory chips, LCD screens, and also controls the upstream supply chain links such as CPU, NAND flash memory, DRAM memory, display screens, AMOLED panels, cameras, etc. All core components and manufacturing supply chain links of mobile phones can almost be produced by themselves. Samsung has very strong capabilities in the horizontally integrated supply chain system, which is a capability that domestic mobile phone manufacturers and even Apple do not have.
relies on the ability of vertical integrated supply chains to establish factories and start movable property lines in various markets. Samsung's set of full-industry chain components are implemented locally. Samsung has the conditions to deepen its cultivation in various regional markets in the global international market.
At present, Samsung has the most extensive offline physical sales services in the world. From the supply chain to the channel, it can be self-sufficiency, forming a very complete layout of high, medium and low models, forming a tactical approach for aircraft seas, and decentralizing better flagship functions. For example, Samsung A series has been equipped with IP68 waterproofing for a long time, and the domestic camp did not do this earlier.
In addition, in recent years, the Galaxy Z Fold series and Galaxy Z Flip series of Samsung foldable screen phones have also been the fastest to cover various markets.
Due to the vertical integrated supply chain, Samsung does not need to rely too much on external key suppliers to import key components. Therefore, Samsung mobile phones, especially mid- and low-end products, can reduce the cross-border procurement costs of components and the patent licensing costs of related components in terms of cost. Using their own components, it must have more cost-effective advantages in terms of price and configuration.
For example, from the data, we can see that the Samsung Galaxy A13 hot-selling cycle released in December 2021 has reached 7 months; the Samsung Galaxy A12 and Samsung Galaxy A32 hot-selling cycle exceeds 1 year, and the three models are all mobile phones in the mid- and low-end markets. In the mid- and low-end markets, Samsung has very strong competitiveness in overseas markets.
Sometimes cross-border imports corresponding components and assembly tool products, which involves huge logistics costs and patent technology licensing costs, and even legal risks in certain special markets. For example, at the end of April this year, India accused Xiaomi and its Indian subsidiaries of illegally remitting money to foreign entities by pretending to pay the royalties . However, Xiaomi's explanation is that Xiaomi's Indian version of the product uses Qualcomm technology, which are all patent fees paid to Qualcomm.
In recent years, India's fine sanctions stick has swung to Xiaomi OV, but Samsung, which has long occupied the largest market share in India (sometimes tied with Xiaomi in recent years or ranked second in a weak proportion), has rarely been caught by India. This may have some relationship with Samsung's key components and technologies that can achieve self-sufficiency in regional markets, and it also avoids related cross-border payment risks in terms of policies.
In fact, compared to domestic mobile phones that began to enter overseas markets only after 2016, Samsung has been deeply engaged in various regional markets such as Europe, Africa, the United States, and Southeast Asia, India for many years. The relevant market channel layout has been very complete, and it has entered each market earlier. Even in the feature phone market, Samsung mobile phones, computers, home appliances and kitchenware products have been globally laid out, with a stronger brand influence and a deeper impact on the minds of users in the global market.
For example, since Samsung's home appliances, PC and digital products are circulated in the global market, including domestic mobile phones such as Europe and North America, it is difficult to build on Samsung's various market distribution channels and local marketing resources have been deeply rooted in the long run, and can also be reused.
. Samsung has a wide range of products in other fields, forming a brand influence covering many fields, which in turn has affected the minds of users in various markets around the world. From the top effect and the brand effect level, the global market may be more preferred at the mid- and low-end mobile phone products level.
In addition, we know that Samsung has a strong hardware gene, but the software system is a shortcoming, and in the past, it has also lost to the customized system experience of domestic mobile phones. However, because overseas Android phones are different from domestic ones, they use the Android original system unified by Google , Google GMS+ original , and the ecological experience of Google Auto is itself good, making up for Samsung's shortcomings in the software system experience level.
In addition, Samsung has a close cooperation with major manufacturers such as Google , Microsoft , and has strong cooperation and bundled publicity effects at the software and hardware level. For example, Samsung Android and PC Windows systems have formed an interconnection effect. Microsoft's official website sells Samsung mobile phones, Samsung mobile phones have Microsoft software out of the factory, and Samsung's one UI has also begun to take the lead in Android design, optimize UI, etc. overseas.
With the help of Google, and with the support of excellent hardware workmanship and design, Samsung's high-end flagship still has the strength to fight with Apple iPhone.
Therefore, Samsung has the most extensive offline physical sales service network and a large number of local supply chain factories in the world, coupled with the support of Google GMS services from the original Android system overseas to make up for the shortcomings of system software, as well as the deep cultivation of localized channels and the wide coverage of ecological products in various places, jointly promoting the high sales of Samsung mobile phones in the global market outside China.
From Samsung, what are the facts we need to re-recognize?
Of course, Samsung's current performance in the global market is also to some extent due to the US chip sanctions on Huawei. Judging from the momentum in 2019, Samsung is facing a very dangerous situation in overseas markets such as Europe.
Looking back at the past data, in 2018, Huawei reached 206 million units, and international sales reached 100 million units, an annual increase of 50 million units. That year, Samsung's shipments fell to 290 million for the first time, a year-on-year reduction of 25 million units. The difference in shipments between the two decreased from 163 million units to 86 million units.
In Q1 2019, Huawei's quarterly shipments continued to rise, with shipments as high as 59.1 million units, and the difference between the quarterly shipments from Samsung narrowed to 11.8 million units.In Q1 2019, the global market share of Huawei mobile phone reached 19%, and the global market share of Samsung mobile phone was 23%, and the gap was getting smaller and smaller.
Next is Google cut off supply of on May 20, 2019, Huawei's overseas business fell into crisis. In 2019, Huawei maintained a 40% growth rate in China, and the overseas market growth rate became 0.
Therefore, if it is not affected by sanctions, Samsung's share in Europe's high-end overseas market areas will be greatly impacted. But because of Huawei's sanctions and withdrawal, Samsung has also begun to return to the growth track.
This means that Samsung has comprehensive strength that cannot be underestimated, but Samsung's competitiveness is not unchallenging, especially as we see that this year, under the strong attack of Apple's iPhone, Samsung's local mobile phone base has begun to lose its market share in South Korea, falling below 60% for the first time.
But from the two years since Huawei faded out, Huami OV currently does not have the strength and ability to challenge Samsung overseas. Domestic manufacturers are focusing on deepening their efforts in the Indian market and seizing the demographic dividend of the Indian market. Whether it is in the strength of hardware supply chain, brand influence, global channel layout and local network construction capabilities, and competitiveness at various prices, there is still a certain gap with Samsung.
We know that Samsung has lost the Chinese market. In the early years, many people thought that Samsung may gradually decline in the global smartphone industry. After all, in the domestic market, since the Samsung note7 incident, Samsung has gradually become marginalized in the Chinese market. In the past two years, almost no one has paid attention to Samsung mobile phones. Samsung phones don’t have much presence in the Chinese market either. But Samsung is still booming in the global market.
In the inherent perception of many people in the past, the Chinese market was very large. If there are manufacturers who lack the Chinese market, they will inevitably go downhill. But Samsung actually taught us a lesson. This world is big, and no one can live without anyone else. We should not be too arrogant and underestimate the world's bigness.
Only when an enterprise can truly integrate into the global market, seek to continue to deepen its cultivation in the global market, and gain living space, can it be truly powerful. Despite facing a global recession of electronic consumption, it is not surprising that it can support Samsung to be the leader in the Android camp in the future by relying on its hardware R&D process capabilities, its full industrial chain architecture, and its channel network and brand influence in the global market.
The inspiration for domestic mobile phones is that despite the setback in the Indian market, we should not give up our global layout and still adhere to our global layout and global vision. In fact, due to the brand effect of Apple's iPhone and the support of closed software and hardware closed-loop systems, it is difficult for domestic mobile phones to challenge Apple in the overseas market. The real rival of domestic mobile phones in the overseas market is Samsung.
Whether it is to control the upstream hardware supply chain for a long time, constantly pursue breakthroughs in hardware technology and product technology, or to deepen the localization channel network and government-enterprise relationship in various regional markets around the world, Samsung's globalization capabilities and resilience are a reality that domestic mobile phone manufacturers need to recognize, and it is also worthy of our manufacturers' deep thinking and learning.
Author: Wang Xinxi TMT Senior Commenter This article is not allowed to be reproduced without permission
