Samsung May Be Re-Entering Chinese Mobile Phone Market Soon

Samsung phones and electronic devices may be making a return to store shelves in China soon.

Credit: Jeon Heon-Kyun | European Pressphoto Agency (EPA)

A recent Financial World Weekly report mentioned that the South Korean electronics giant established a new department at its headquarters in Seoul named "China Market Innovation Team" which will cover smartphones, smart home devices and similar products.


Additionally, the report also stated that the new department will directly report to Samsung's Vice Chairman, Han Zhongxi.


The report also mentioned that Samsung signed a strategic cooperation agreement with JD.com, one of China's largest retailers, on 12 January 2022. The agreement allegedly states that the two companies would cooperate on marketing, with an expected target of 5 billion yuan.

The iPhone 13 was the most popular smartphone in China during its launch. It also held the spot for six consecutive weeks during the last months of 2021. Credit: Jeremy Bezanger on Unsplash

An article from Duowei News citing the Financial World Weekly report didn't clearly state the reason why Samsung wants to return to the Chinese market, but it mentioned that the company's return would be "for real" this time due to the popularity of high-end mobile phones and electronic devices in the Chinese market. It also mentioned that local phone brands like Xiaomi would not take these events favourably as its phones are unable to compete with Apple's iPhone 12 and 13 series in China.


You may remember Samsung becoming the target of criticism in China because of the company's "discrimination" against Chinese consumers during the global recall of its Galaxy Note 7 smartphones. A commentary piece from China Central Television mentioned that Samsung's behaviour in China after the recall was "full of arrogance" - a significant difference when compared to its video apology issued to U.S. consumers as well as the replacement options and compensation for defective smartphones that accompanied it.


Although Samsung's China division eventually issued an apology for a "lack of sufficient explanation" on 1 September 2016, the damage to its brand in China was done. According to the Duowei News article, the company and its smartphones became "a very marginal mobile phone brand", leading to the withdrawal of many resellers in China.


The company was also reported to have established a dedicated team to "spearhead efforts" to increase the company's sales of smartphones and electronic devices in China in December 2021.

 

Written by John Paul Joaquin

 

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