Over the past few years, Samsung has had a tough time in China’s smartphone industry.
In the face of severe competition from local players such as Huawei and Xiaomi, the market share of the South Korean technology giant has fallen to 1% in one of the biggest smartphone markets in the world.
But those same Chinese competitors— who have diminished Samsung’s smartphone standing — may also be the way back through parts for the company to China.
On Monday, Samsung launched what it claimed to be the first 108-megapixel image sensor for smartphone cameras in the sector with a picture resolution equal to a “high-end DSLR camera.” This year, the sensor will be featured on an upcoming Xiaomi phone, highlighting Samsung’s strategy of gaining market share in China’s handset sector through innovative smartphone components. Sony sensors were earlier used by Xiaomi.
Samsung has already scored other victories, including with Oppo, a Chinese consumer electronics company, who later chose to use image sensors from the South Korean company.
“The market share of Samsung in China is only 1%. However, it is gaining ground with its powerful component company” Sansung told CNBC
“Samsung has grown considerably thanks to the development of Huawei, Oppo, Vivo, Xiaomi, Realme and OnePlus,” Shah said, using OLED screen technology and memory chips such as Storage NAND and DRAM. “Now its other parts are growing quickly… The other Chinese handset brands are Realme and OnePlus.
Targeting Chinese companies is an excellent growth approach because of three of China’s top five largest market share smartphone players in the world. Four of the top five players on the national market are Chinese. This may assist China to gain ground for Samsung.
Samsung has been successful with Chinese companies not only with image sensor technology. Motorola, which is owned by China’s Lenovo, announced in May that its new phone would be using a Samsung processor. Samsung has been successful with Chinese companies not only with image sensor technology.
The business requires to discover fresh income streams despite smartphone market weakness and memory chip pricing, one of its major profit drivers. These variables saw the operating profit of Samsung’s second-quarter fall more than 55% year-on-year.
But in its second-quarter earnings release, Samsung noted that “demand was strong for 5 G modems and high-resolution / big-pixel image sensors.” 5 G refers to mobile networks of the next generation that promise super-fast data speeds that can support new technologies such as driverless cars. Samsung also created a processor and modem called a system-on-chip (SoC) that could be another development sector.
Over the previous few years, through investments in new factories, Samsung has signaled its dedication to the Chinese market.
Last year, at its plant in Xi’an, China, the business started building a second production line for memory chips. Samsung said it would invest $116 billion in sophisticated processing chips by 2030 earlier this year to diversify its company away from relying on memory chips.
Shah said customers in China want the recent technology in their phones, and Samsung’s research and development initiatives are seeking to construct that.
“Samsung is definitely ahead of the curve and a lot of R&D pumping to meet the growing demand.”