Samsung Might Lose Huawei

Samsung and Huawei are the two biggest smartphone players in the game with Samsung sitting firmly
at the top followed by Huawei at second.
But despite their rivalry, Huawei represents a huge chunk of Samsung's revenue.
Huawei is the second-biggest smartphone maker in the world, in 2019 alone they are expected
to sell over 260 million smartphones in the world.
and Huawei is reliant on Samsung for certain smartphone components such as the display,
memory semiconductor chips such as RAM and storage.
In fact, according to Business Korea Huawei is one of the top 5 clients of Samsung in
the world.

So they represent a huge chunk of revenue for Samsung but now it looks like Samsung
could lose on of their biggest clients, Huawei.
You see the Chinese industry is changing.
The Chinese government has come up with an initiative called China Manufacturing 2025
where China has decided to strengthen its local domestic industries and wants to lessen
its reliance on non-Chinese companies by the next 5 years.
So this will help Huawei in lessening its reliance on Samsung and in return Samsung
is expected to suffer big losses in the wake of this market shift.
As we know semiconductor business is Samsung's biggest business, Huawei accounts for almost
50% of smartphone market share in China and one of the reasons why Samsung was having
record revenues in recent quarters was because of Huawei.
So Huawei turning to a domestic Chinese maker for the memory semiconductor chips would surely
put a huge dent in Samsung's business.

So we know this already that the Galaxy S11 will have a 108MP camera and 5 times optical
periscope zoom camera lens.
We have also talked about the Galaxy Fold 2 which is going to be a clamshell-like device
just like the new Moto Razr and a few days ago we talked about its price as well.
South Korean media is reporting that it will be priced at $850 which is significantly less
compared to the Galaxy Fold's $2000 price tag.

Anyway, we have some camera specifications of the Fold 2 and according to Bloomberg Samsung's
clamshell device will also have the 108MP camera alongside the 5 times optical zoom.
Samsung wants to sell at least 6 million of these phones next year and judging from its
price and now the camera specs I don't think it would be hard for them to actually do that.
So Samsung is dominating the Korean smartphone market making the competition look bad.

In the third quarter of 2019 Samsung has got a market share of 71% in its own home turf.
That's a 4% increase year over year and the interesting thing is 7 out of 10 best selling
smartphones in South Korea are Samsung's.
Ther rest two were from Apple's and only one was from LG.
Here's the market share of the other two companies.
One of the biggest reasons Samsung dominates South Korea is because they are a domestic
company and also because the Galaxy Note 10 and Note 10+ which were released in Q3 of
this year are really well-made devices which contributed in a big way for this 71% market
share that Samsung was able to achieve.