Samsung co-CEO says Sales are Picking up in China
Samsung Electronics Co Ltd is one of the world’s best-known smartphone makers, and China remains one of the biggest markets in the world when it comes to that particular product. The company’s sales figures in China had slumped considerably over the recent months, and that had been the source of a lot of anxiousness among shareholders. However, according to Samsung’s co-CEO, the sales for its signature Galaxy range of smartphones has picked up in China, and he believes that the slump is going to be reversed pretty soon.
The decline in sales in China had nosedived at an alarming rate over the years for Samsung. Back in 2013, Samsung held a healthy 20% share in the Chinese smartphone market but its current market share is now down to 1%, and much of that has to do with the domination of Chinese smartphone makers, led by Huawei Technologies. Additionally, the declining demand in China due to the economic downturn was also a big factor, and eventually, Samsung had to close one of its manufacturing units in the country. DJ Koh, who is the co-CEO of the Korean electronics giant spoke to shareholders at the company’s annual general meeting and expressed he was confident about the turnaround. He said,
“It has been tough in China in the last two years. We have changed everything from our organization and people to distribution channels. I think our flagship and mid-priced models, these two products will bring a lot of change to the China market … I am positive.”
There are reasons for optimism as well. The company has pinned its hopes on its latest handset, which is known for its larger screen and is also compatible with 5G. Considering the fact that Apple is not going to be able to launch its own 5G phones before 2020, it gives Samsung a head start in a market that is all set to explode in the coming years. However, Kim Ki-Nam, who is also a co-CEO warned about difficulties and growth challenges in 2019. He said,
“We are expecting many difficulties this year such as slowing growth in major economies and risks over global trade conflicts.”
However, the annual general meeting also saw the executives being berated by shareholders. One of them stated that the executives are paid too much and they expected better from executives who are paid such salaries.