Samsung loses share in handsets, gains in others
SEOUL, Aug. 18 (Yonhap) -- Samsung Electronics Co. saw the global market share of its mainstay handset business suffer a decline in the first half of 2014, data showed Monday, despite gaining ground in other sectors such as TVs, dynamic random access memory (DRAM) and display panels.
The world's No. 1 maker of smartphones' biannual business report showed its global presence in the handset industry came to 24.9 percent in the January-June period, down 1.9 percentage points from a year earlier. The company is estimated to have shipped 223.69 million units over the cited period.
Samsung's lackluster sales of handsets, led by smartphones, were cited as the major drag on its second-quarter net profit, which crashed 19.5 percent to 6.25 trillion won (US$6.11 billion) from a year earlier.
While Samsung said it plans to diversify its handset lineup to cover both the high-end and low-end sectors, industry watchers believe the South Korean giant will continue to lose ground down the road, due mainly to the rise of Chinese firms aggressively tapping global markets with price competitiveness.
Samsung's presence in the global TV market, on the other hand, climbed 2.4 percentage points on-year to reach 24 percent in the first half of 2014, with the company attributing the growth to the rising demand for Ultra HD TVs.
Industry watchers said Samsung is also set to ship more than 50 million TVs this year to set a new record, as the tech giant sold 26.5 million units over the January-June period. For all of 2013, the company sold 47.5 million units.
The company's global share for DRAMs came in at 38.9 percent in the first half, up 2.7 percentage points from last year's 36.2 percent, with Samsung attributing the growth to its 20-nano technology which differentiated itself from other rivals in the industry.
Samsung's market share in display panels came to 21.6 percent in the first half, up 1.2 percentage points from a year earlier. The company added it will continue to focus on high-end models, including flexible products, for long-term growth.