Samsung appears to be overpowering low-cost Chinese competitors in the enormous smartphone market according to a study.
According to research firm Canalys, Samsung, which is already the largest smartphone vendor in China saw a 21% jump in market share for the third quarter ended 30th September compared to 14% a year earlier.
Samsung doubled its sales in the Chinese market with nearly 19 million smartphones in the quarter.
According to Canalys, Samsung grew much faster than its close rival Lenovo Group Ltd, which had a 64% increase in sales but its market share remained the same at 13%.
China overtook the US as the largest smartphone market last year, and the rapid market growth is driven by demand for low cost smartphones. Nicole Peng, a research director for Canalys said that Samsung’s growth in shipment volume came mainly from the mid-range and low-end segments.
According to Peng, many Chinese consumers would choose a Samsung smartphone if it is a little more expensive than a cheap Chinese phone. Samsung is widely known for its TV sets.
In the third quarter, Apple’s iPhone shipments to the Chinese market grew by 32% as compared to the year earlier, though its market share shrunk to 6% from 8%. Apple’s hefty price tag for the iPhone 5C indicates that it focusing on the high end segment, where margins are stable but growth is not very robust.
Peng noted that the battle between Samsung and the low-end Chinese companies will continue to intensify.
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