"China has been famous for fake products, but now Chinese smartphone manufacturers are pushing into the local Korean market," notes a new Korean report published today. They further noted that "It proves that they have grown rapidly such that they are ready to penetrate the home ground of Korean handset makers, who are dominant players in the worldwide smartphone market." Isn't it funny how the Koreans see China's smartphones as being "fake products," or copycat products – yet don't even blink when their local hero Samsung copied Apple's features? Even when found guilty of patent infringement, it was just fine by those in Korea. So with Chinese smartphone OEM's learning from Samsung's tactics, it's simply payback time, just when Samsung is hurting the most.
The Korean report notes that "Xiaomi Tech nabbed the top spot in the Chinese market in the second quarter of this year, beating Samsung Electronics. The reality is that Chinese smartphone sellers have grown to the extent that they can threaten the position of Samsung in the global market."
In July we were one of the first North American blogs to illustrate a chart placing Samsung in fourth spot in China with Apple's iPhone 4S and 5S taking second and third spots.
The Korean report further noted that "As Chinese smartphone makers are sharpening their competitiveness; their competitive advantage in price cannot be ignored. Korean consumers are buying Chinese smartphones at low prices through Internet group purchases, since they can purchase Chinese handsets at half the price of local smartphones. That explains why local smartphone vendors are nervous at the prospect of losing market share.
What is interesting is that Korean consumers have different attitudes about Chinese smartphones. In a blog for a group purchase of Xiaomi's Mi 3, one blogger said, 'You can search for information about the technical specifications of the new model on the Internet. It has a lot of advantages.' It indicates that local Korean consumers no longer consider Chinese smartphones to be low-quality products."
With the Chinese smartphone makers now attacking Samsung on their home turf using their own copycat methodologies, no wonder that Samsung is forecasting a poor Q3 ahead.