Samsung Electronics sees green shoots in China smartphone business: co-CEO

By Ju-min Park SEOUL (Reuters) - Samsung Electronics Co Ltd said on Wednesday its new Galaxy flagship smartphones were selling well in China and it was confident it could reverse the recent slump in its fortunes in the world's biggest smartphone market. Samsung's market share has plunged from about 20 percent in 2013 to less than 1 percent currently as fast-growing Chinese rivals such as Huawei Technologies Co Ltd proved more agile in responding to the latest trends.

Reuters March 21, 2019 00:07:07 IST
Samsung Electronics sees green shoots in China smartphone business: co-CEO

Samsung Electronics sees green shoots in China smartphone business coCEO

By Ju-min Park

SEOUL (Reuters) - Samsung Electronics Co Ltd said on Wednesday its new Galaxy flagship smartphones were selling well in China and it was confident it could reverse the recent slump in its fortunes in the world's biggest smartphone market.

Samsung's market share has plunged from about 20 percent in 2013 to less than 1 percent currently as fast-growing Chinese rivals such as Huawei Technologies Co Ltd proved more agile in responding to the latest trends.

"It has been tough in China in the last two years. We have changed everything from our organisation and people to distribution channels," Samsung Electronics Co-Chief Executive DJ Koh told shareholders at the firm's annual general meeting.

"I think our flagship and mid-price models, these two products will bring a lot of change to the China market ... I am positive."

While Samsung remains the world's largest smartphone maker with nearly a fifth of global unit sales, it underperformed a slumping market last year and has closed one of its mobile phone manufacturing plants in China.

The South Korean tech giant is pinning its hopes for a fight-back on its latest handset featuring a big, bending screen and the first 5G connection in a premium phone, a feature analysts do not expect Apple Inc to match until 2020.

FRUSTRATED SHAREHOLDERS

The upbeat outlook for mobile devices in China contrasts with the company's more pessimistic take on 2019, with trade tensions, weak economic growth and softer demand for memory chips expected to weigh on operations.

"We are expecting many difficulties this year such as slowing growth in major economies and risks over global trade conflicts," Co-Chief Executive Kim Ki-nam told the meeting.

Some shareholders vented their frustration and took the microphone to berate executives.

"If you're paid a lot of annual pay, you should work harder. I'm asking the management to do good work," one shareholder told the board.

The meeting drew more than double the usual crowd following a stock split last year which made it easier for retail investors to own Samsung stock. There was a long queue around the Samsung building to get in, and some shareholders complained they were getting hungry as the meeting dragged on.

Samsung is seeking new growth in areas such as network equipment manufacturing as sales of its mainstay chips and smartphones begin to drop.

As expected, shareholders voted to approve the appointment of board directors.

(Reporting by Ju-min Park; additional reporting by Hyunjoo Jin and Heekyong Yang; Editing by Stephen Coates)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.