This year, Samsung's mobile phone sales are hit hard. It has been on a downtrend since last year's holiday quarter and is continuing through 2018. IDC and Strategy Analytics reported that Samsung's smartphone sales dropped about 13% in the last quarter. Q2, a 2% decline in the first quarter, and a 4% decline in the fourth quarter of 2017. Samsung's Galaxy Note 9 and Galaxy S9 devices were not competitive at the high end, and Samsung Electronics is currently losing its position as the mid-to-low end of the smartphone market.
Samsung Electronics' major Chinese competitor, Huawei, surged this year. Huawei's smartphone shipments grew 32% in the quarter, and Apple again outperformed Apple, the world's second-largest smartphone brand, for the third time. Much of this growth will drive consumers to consider Huawei devices and midsize mobile devices thanks to the popular P20 flagship handset. Huawei is a small presence in the United States, but it is another major market that will drive further growth in the future without warnings from the FBI, the CIA, and the NSA.
Another Chinese competitor rejected by Samsung Electronics Xiaomi, who is also seeing growth due to Samsung's decline. Xiaomi's smartphone shipments have risen about 20% in the last quarter, making it fourth in global smartphone shipments. "Samsung is losing ground to Huawei, Xiaomi and other Chinese competitors in the huge Chinese and Indian markets," said Neil Mawston, managing director of Strategy Analytics. "Samsung needs to tackle China and India before it's too late."  Samsung acknowledges that it is suffering from the mid to low price of the smartphone market, but suggests that it will soon be improved on import guidance. Samsung said in Q4, "We expect the shipments to increase, especially to strengthen the mass production lineup including Galaxy A7 and A9 Samsung also expects the entire smartphone market to grow in 2019, but Samsung and Samsung will launch three Galaxy S10 models and a foldable mobile phone early next year, Samsung's foldable mobile phone will be available at the developer conference next week.
While these high-end devices are essential to Samsung's smartphone brand, competition in the mid- to low-end smartphone market is intensifying, creating Samsung's 2019. Huawei and Xiaomi offer premium feature- It is ready to challenge Samsung's monopoly position and is willing to fiercely compete with China.