“We are working on several efforts, including creating a China innovation team,” said Roh Tae-moon, President and Head of Samsung Electronics Mobile eXperience (MX) Business, during a press conference in July last year.
On Apr. 22, Samsung Electronics, the world’s leading smartphone company, unveiled its first locally specialized phone in seven years—the Galaxy C Series, aimed at recapturing the Chinese smartphone market. The ‘C’ in “Galaxy C’ stands for China.
According to a report by Counterpoint Research on Apr. 24, Samsung Electronics had a 0% share in the Chinese market in the first quarter of this year. It remains to be seen whether the Galaxy C Series can help Samsung reverse its declining fortunes in China, a market currently dominated by Vivo (17.4%), Honor (16.1%), Apple (15.7%), Huawei (15.5%), Oppo (15.3%), and Xiaomi (14.6%).
Until 2013, Samsung held a 20-30% share of China’s smartphone market, alongside Apple and LG Electronics. However, its share dropped in 2014 as Chinese companies such as Huawei, Oppo, and Vivo began to introduce smartphones. The deployment of the Terminal High Altitude Area Defense (THAAD) system and resultant anti-Korean sentiment, coupled with Chinese government policies favoring local manufacturers, further pushed Samsung’s market share below 10% in 2015, which has remained at approximately 0% since 2018.
The rise of Chinese smartphone makers has been a significant factor in Samsung’s struggles. An industry insider noted, “Chinese companies are quickly adopting the latest technologies to serve the country’s 1.4 billion people. Their ability to maintain cost competitiveness, thanks to lower labor costs and patriotic consumer behavior, leaves little room for foreign companies.”
Samsung initially launched the Galaxy C Series of entry-level smartphones in 2016, targeting the Chinese market. This series, which includes models like the Galaxy C5, C7, and C9, offers performance on par or slightly better than the mid-range Galaxy A series but at a lower price point. The Galaxy C8 was introduced in 2017, but it did not lead to a significant recovery in market share, and no further new models from the C Series have been released since then.
Tech media outlets have shown interest in Samsung’s renewed focus on China. Gizmochina remarked, “Samsung Electronics is targeting the Chinese market again with the Galaxy C55,” while GSMArena commented, “Samsung Electronics has introduced a new Galaxy C, and its performance is impressive.”
The Galaxy C55, a 5G smartphone, matches the performance of the Galaxy M55 sold in India but has been specifically adapted for the Chinese market. It features an orange and black leather back to cater to local preferences.
However, some analysts remain skeptical. With the iPhone dropping from first to third place this year due to nationalistic buying preferences, Samsung’s challenge in regaining market share is daunting.
Nikkei Asia said, “Chinese consumers strongly prefer domestic products, and even when they opt for foreign products, they believe local options can always replace these. Samsung’s re-entry into the Galaxy market is significant but unlikely to yield substantial results.”
