America is no longer the largest Samsung market
– Samsung posted sales of 83.9 trillion won ($74.6 billion) in 2018 so far.
– Sales to the Americas in the first two quarters were 26 percent of the total.
– Asia’s top economy continued its rise to 32.7 percent in H1 2018.
Samsung Electronics Co.’s overall sales to the Americas, over the January-June period, were 26 percent of the total. That’s 5.8 percent lower from the 31.8 percent posted for the entire past year. The company posted sales of 83.9 trillion won ($74.6 billion) for the first two quarters of 2018. Concurrently with the slower performance in the Americas, Asia’s top economy continued its rise from 18.5 percent in 2013, 20.6 in 2014, 28.3 in 2017, all the way to 32.7 percent for the January-June period of this year.
Sales to China were 27.4 trillion won ($24.4 billion), making it the largest Samsung market. Analysts explain this by a sharp increase of demand for Samsung chips by Chinese tech giants, simultaneously with “the US government’s protectionism policies” that slowed down Samsung’s sales in the key North American market.
The report mentions Huawei as one of the top five clients for Samsung. This was not the case in 2017 when the list included Apple, Best Buy Co., Sprint Corp., Verizon and Deutsche Telekom. Five unnamed firms accounted for 11 percent of Samsung’s sales in 2018 so far. Companies like Apple Inc., Verizon Wireless, Germany’s Deutsche Telekom AG and Hong Kong’s Techtronics are all major buyers for Samsung this year.
Industry experts say Samsung should be careful with its Chinese approach. On one hand, China is pushing its own semiconductor industry, which could hurt the South Korean company. On the other hand, Samsung “may become the victim of the irrational trade dispute between Washington and Beijing, which is ignoring the existing international system“.