Samsung May Soon Wrap Up its Smartphone Business in Japan
According to a new report by BusinessKorea, Samsung may wrap up its smartphone business in Japan, the same country where its flagship phablet Galaxy Note Edge was released before anywhere else in the world in October last year. The publication notes that during the past several months, the Edge has however failed to resurrect Samsung’s business in Japan, the world’s largest premium market, which is why it is considering a complete withdrawal from the region.
As of December last year, Samsung accounted for only 4% of the Japanese smartphone market, with Galaxy Note Edge selling only tens of thousands of units for four months after its launch. Apple, on the other hand, is riding high, since its share rose from 20% to 30% during the same period, thanks to the iPhone 6 and iPhone 6 Plus. As of now, Apple tops the list, followed by Sony and Sharp, with Samsung coming in at 6th place.
“According to industry sources on Feb. 9, Samsung is in a quandary over its struggling smartphone business in Japan. Some in the company are reportedly saying that continuing the business only causes losses rather than profits.
Actually, consumers in the Japanese market have a strong preference for locally-made products. Hence, it is hard for foreign companies to dominate the market. However, iPhones have been logging strong growth, while Galaxy models have shown a downward trend. Sluggish sales performance in the market has placed Samsung’s management in a quandary”.
Back in 2007, Samsung also withdrew its TV business from Japan, constituting merely 0.1% of the Japanese TV market at that time.