A customer is looking at the 'Galaxy Buds3 Pro' at a Samsung store in Gangnam-gu, Seoul. /News1
A customer is looking at the 'Galaxy Buds3 Pro' at a Samsung store in Gangnam-gu, Seoul. /News1

Samsung Electronics, the world’s second-largest wireless earbuds maker, is currently facing significant challenges due to increasing competition from Chinese companies and quality issues with its new product, the “Galaxy Buds3.”

According to technology market analyst firm Canalys on Aug 26., Samsung’s market share in the global wireless earphone market for the second quarter of this year stood at 7.8%, down one percentage point from the same period last year, but still enough to maintain its second-place ranking. In contrast, Xiaomi saw its market share rise by 1.3 percentage points to 6.5%, securing the third spot. Last year, the gap between Samsung (8.8%) and Xiaomi (5.2%) was more than 3 percentage points, but this year, it has narrowed to just 1.3 percentage points as Xiaomi increased its shipments by approximately 1.5 million units.

Huawei, in fifth place, also boosted its shipments by about 1.4 million units year-on-year, raising its market share to 4.8%. Apple remained the market leader with a 21.9% share, despite a 5.4 percentage point decline from the previous year. The fourth spot was claimed by the Indian company boAt, with a 6.3% market share.

In the second quarter of this year, global shipments of personal audio devices reached 106 million units, a record high for any second quarter. Of these, wireless earbuds made up the majority, with 77 million units shipped.

Global wireless earbuds market share in Q2 2024. /Canalys

In January, Xiaomi introduced the “Redmi Buds 5 Pro,” cordless earphones priced around 80,000 won (about $60), and has been expanding its sales regions. This product features advanced audio codecs for high-quality music playback, up to 38 hours of battery life with a fully charged case, and noise-canceling capabilities that can block up to 52 dB of noise.

Huawei launched the “FreeBuds Lipstick 2″ in April, priced at 310,000 won ($234), which attracted attention with its distinctive lipstick-shaped case design. When paired with Huawei’s HarmonyOS devices, it delivers enhanced sound using spatial audio technology. The case provides up to 24 hours of continuous use on a single charge.

Samsung Electronics unveiled the Galaxy Buds3 on July 10, priced at 319,000 won ($241). This model is Samsung’s first to feature stem earbuds, designed with a long, rod-like extension from the main body.

Initially, there was significant anticipation for the Galaxy Buds3, Samsung’s first new wireless earbuds release in three years since the Galaxy Buds2 in 2021. The product introduced several new features, including AI-powered sound optimization based on ear shape and wearing habits, and real-time translation.

However, during the pre-sale period, which ended on July 18, the Galaxy Buds3 faced criticism for quality issues. Users reported problems such as asymmetrical design and poor finishing, leading to complaints about the product’s lack of quality despite its high price. Some users claimed to have received defective units in online communities, such as Samsung Members. Additionally, deliveries of the Galaxy Buds3 have reportedly been delayed in countries like the U.S. and the UK due to these quality concerns.

Samsung Electronics issued an apology on its website on July 19., stating, “We deeply apologize for the quality issues raised with some products purchased during the pre-sale period of the Galaxy Buds3,” and advised customers experiencing problems to visit the nearest service center for exchanges or refunds.

Nam Sang-uk, an associate research fellow at the Korea Institute for Industrial Economics & Trade (KIET), commented, “Samsung Electronics needs to further widen the market share gap with Chinese manufacturers in the third quarter of this year, but this seems unlikely due to the controversy surrounding the Galaxy Buds3.”