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Samsung, LG or lose the Chinese market South Korea electronics industry scenery is back!

07 Mar 2017 - Samsung
Introduction: let the South Korean people proud to Samsung, LG as the representative of the electronics industry scenery is gradually subsided. On the one hand, it is being the rapid rise of China's domestic brand strong impact, market share continues to decline; the other hand, because of the current situation and the possibility of losing the Chinese market. This will cast a heavy shadow on the economic recovery of the Korean economy, which is one of the core pillar industries of the electronics industry.
Samsung fell
Was arrested on suspicion of bribery to South Korea's president, Park Geng-hui, who was arrested by the court recently, and the chairman of Samsung Electronics, the largest shareholder of Korea's Samsung Group, and vice president of Samsung Electronics.
Coupled with the previous Note 7 explosion and other events, Samsung Electronics executives said that "is now the Group since 1979, the most serious since the founding of a crisis."
"Samsung a cold, South Korea on the fever." This is not exaggerated.
New Financial Watch reporter learned that, with a humble rice sales shop "Samsung Chamber of Commerce" started from scratch, Samsung Group in a few decades to become one of the world's leading technology companies.
From the data point of view, in 2011, Samsung Group's revenue of 149 billion US dollars accounted for 13% of GDP in South Korea, by 2014, Samsung Group revenue of 305 billion US dollars, accounting for 21.67% of GDP in South Korea.
Samsung Electronics is a flagship company, revenue in 2016 up to 201 trillion won (174 billion US dollars), operating profit of 29.2 trillion won (25.6 billion US dollars). Up to now, Samsung's market capitalization of up to 241.1 billion US dollars (about 165.29 billion yuan), ranked 14th in the world.
In Korea, the top ten listed companies in the market value of the top three Samsung electronics market value than the remaining nine companies even higher market value.
It is reported that in the international market, Samsung Electronics production LCD TV, LED TV and semiconductor products sales alsopped the list.
At the same time, Samsung Electronics is the world's largest memory chip maker, Samsung mobile phones in the international market has a long share of more than three percent, and its production is not only equipped with Samsung's computer, television, mobile phones and other equipment, but also supply other manufacturers , Including competitors, many Chinese TV manufacturers are using Samsung's display. Even the Samsung company has produced a large part of the iPhone produced by the Samsung provided by Samsung, including processors, DRAM flash memory and other core components and part of the display.
Samsung Electronics, in Korea really important. And this behind, it is a long time the Korean electronics industry in the world has a strong competitive expression.
However, this situation is being rapidly rising Chinese technology companies to break.
The most typical example is that domestic mobile phone in the past few years the performance of the dazzling, in the fierce competition, the Samsung mobile phone market share gradually eroded.
Data show that in 2014, with millet and Huawei and other domestic mobile phone company's rise, Samsung market share fell to 12.1%, was millet catch up; 2015, its market share in China 7.7%, with the top five missed.
According to the third-party data statistics agency IDC released 2016 global smart phone shipments statistics, the fourth quarter of 2016, China's Huawei, OPPO, physical shipments were ranked third in the world, three brands Growth far more than Samsung.
In addition, in the field of chips, millet company also recently released in the positioning of high-end independent research and development chip "surging S1", and Huawei and other domestic chip manufacturers to Apple, Samsung and other offensive.
The panel is squeezed
Of course, is not only beyond the mobile phone industry.
February 27, the British survey company IHS Technology released in January 2017 a large LCD panel global shipments, China's largest panel maker BOE Technology Group (BOE) for the first time rose to the first. Which has been the top of the South Korean LG monitor down to second. In China, the world's largest market, BOE to IT field as the core, increasing supply, from the hands of Korean manufacturers took away the share.
However, it should be noted that in the large-scale TV display project, LG's market share is still reached 21.4%, ranking first. Followed by a group of optical power of 16.3%, BOE ranked third, 15.9%.
Although BOE is currently the world's first shipments, but South Korea's two companies LG and Samsung's total shipments of up to 31.5%, more than the BOE 22.3%.
This means that South Korea still has an advantage in large panels, such as LCD TVs, ultra-high-definition television. While South Korean companies have the advantage of technology and market share, but IHS expects BOE will soon join the industry competition. And 2017 will be a year ago for domestic panel makers to fully expand their business areas and enter the large panel market dominated by Korean companies.
There are also data show that in the third quarter of 2016 Korea's share of the global television market was 32.2%, still the first. However, the market share of Chinese enterprises has reached 31.9%, the gap between the two significantly reduced to 0.3 percentage points.
Chinese companies are catching up with South Korea at an alarming rate. Korea Economic Research Institute published in July last year, China and South Korea's competitiveness report, said the eight indicators in the enterprise competitiveness, growth, production scale, patent applications, the amount of overseas mergers and acquisitions in five parts, Chinese enterprises are clearly more than Korean companies.
As the core pillar industry of the Korean economy, the electronics industry is not ideal, but also the economic crisis in South Korea.
In the face of the current worldwide economic downturn, if Samsung, LG such Korean electronics manufacturing enterprises and then lose the Chinese market, South Korea's economic recovery will also cast a thick shadow. This loss, I do not know whether the Korean side to bear.

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