Xiaomi Ranked No. 1 in Smartphone Market Share for the First Time Last June
Samsung Electronics strengthens premium strategy led by foldables
Apple Prepares 90 Million iPhones with Enhanced Camera Features


Xiaomi's leap forward in the smartphone market is notable. In the second quarter of this year, Xiaomi ranked second in the global smartphone market with a 16% market share. It was positioned between first-place Samsung Electronics (18%) and third-place Apple (15%). Particularly in the European and Indian markets, Xiaomi is absorbing Huawei's market share and threatening Samsung Electronics through aggressive product launches that emphasize price competitiveness.

In June, it recorded the top spot in the monthly smartphone market for the first time with 17.1%, surpassing Samsung Electronics (15.7%). Consequently, the market atmosphere is heating up as Samsung Electronics unveils strategic new products for the second half of the year, including a successor to its foldable phone, and Apple is also preparing to announce its next iPhone series.

◇ Samsung Electronics Focuses on the Foldable Market

Counterpoint Research projected that global foldable phone shipments will reach 9 million units this year. It predicted that Samsung Electronics will account for 88% of this total. In addition, the global foldable phone market in 2023, where Apple is known to enter the market, is predicted to reach 30 million units, and Samsung Electronics is expected to maintain a 75% market share.

On the 11th, Samsung Electronics unveiled its strategic smartphones for the second half of the year, the third-generation foldable phones 'Galaxy Z Fold3 (hereinafter Fold3)' and 'Galaxy Z Flip3 (hereinafter Flip3)', at the 'Galaxy Unpacked 2021' global live broadcast event.

Both products enhanced the foldable experience and improved durability compared to the previous generation.

Through the optimization of the display panel structure and the application of a stretched PET protective film, the durability of the main display has increased by approximately 80% compared to the previous model, and touch sensitivity has also been improved. It is also equipped with a new 'Hideaway Hinge' that allows the foldable phone to be unfolded and stood up for use at various angles, and a 'Sweeper' with improved aesthetics by reducing the length of the bristles.

In addition, it is the first foldable smartphone to support an IPX8 rating and uses an 'Armor Aluminum' chassis and Corning's 'Gorilla Glass Victus' reinforced glass to enhance safety against scratches and drops. The 3rd generation Galaxy Z series is lighter than its predecessor, and despite the addition of new features, it has been priced approximately 20% lower, thereby lowering the barrier to entry. This is interpreted as a strategy to maintain market leadership by expanding the base of the foldable market and popularizing it.

Meanwhile, on the 17th, Roh Tae-moon, President of Samsung Electronics’ Mobile Communications Business, announced the removal of advertisements from "default apps," which had been a source of controversy since last year. There was significant dissatisfaction among consumers regarding the fact that they had to watch ads in default apps despite purchasing high-end smartphones costing well over 1 million won. Criticism had also been raised that the company was undermining the premium image it had built up over the years.

Market analysts predict that this year's flagship 'Galaxy S21' series will sell much less than last year's flagship 'Galaxy S20' series, which suffered from sluggish sales due to the pandemic. Consumer dissatisfaction was high starting with the Galaxy S20 series due to blatant cost-cutting attempts even in flagship phones, and this reached its peak with the discontinued 'Galaxy Note 20' series.

The removal of default apps is interpreted as a strategy to overcome the crisis of falling behind Apple in premium image and Xiaomi in cost-effectiveness. It is reported that Samsung Electronics will suffer losses of hundreds of billions of won as a result of this measure. In the second quarter of this year, Samsung Electronics’ IM division recorded sales of 22.67 trillion won and an operating profit of 3.24 trillion won, marking decreases of 6.54 trillion won and 1.15 trillion won, respectively, compared to the previous quarter. Although the second quarter is typically an off-season, the decline was greater than in the first and second quarters of last year, which were hit hard by COVID-19.

◇ Xiaomi Reveals Ambition to Become Global No. 1 Within 3 Years

On the 10th, Xiaomi held a fall new product launch event and unveiled its new flagship product, the 'Mi MIX 4,' which is the first smartphone to be equipped with Qualcomm's latest application processor (AP), the 'Snapdragon 888 Plus.' The Mi Mix 4 is equipped with a higher quality Under Display Camera (UDC) than the one installed in Samsung Electronics' Fold 3.

Although a one-to-one comparison of UDC quality is impossible because foldable smartphones have more films attached to the display than bar smartphones, it appears to have succeeded to some extent in building a premium image. Xiaomi, which has grown primarily through mid-range and low-end smartphones, plans to compete with Samsung Electronics and Apple in the premium market with the Mi Mix 4 in the second half of the year.

Xiaomi claimed the top spot in June sales for the first time in history, absorbing Huawei's recently sluggish market share in China and globally, and benefiting from the ripple effect of Samsung Electronics' supply shortages in June. At the event, Xiaomi CEO Lei Jun declared, "We will take the number one spot in the global smartphone market within three years." Although Xiaomi's image is poor in the domestic market, fierce competition with Samsung Electronics is expected in the European and Indian markets.

◇ Apple, having firmly established a premium image, sets its eyes on foldables

Apple is scheduled to announce the 'iPhone 13 (tentative name)' series this coming September, featuring differentiated camera functions such as video recording and editing. Last year, the announcement of the 'iPhone 12' series was delayed to October due to production disruptions caused by the COVID-19 pandemic, but this year, it is expected to be announced in September as in previous years. There is also a possibility that it will be released as '12S' due to the negative image associated with the number '13'.

The new iPhone is predicted to feature an AI-based filter system that enhances the shape and color of objects or people by applying filters to desired areas, as well as 'Cinematic Video,' a video version of Portrait Mode. Additionally, ProRes, a professional video editing feature, is also expected to be added.

In addition, the 'iPhone 13 Pro Max' is expected to feature a 4,352mAh battery for the first time, larger than its predecessor (3,687mAh), while the 'iPhone 13 Pro' is projected to be equipped with a 3,035mAh battery, an increase of 200mAh in capacity. The initial shipment volume for the next generation is expected to be approximately 90 million units, exceeding the 75 million units of the iPhone 12 series. Meanwhile, the foldable model is expected to be released in 2023.