Five Reasons Why Samsung Has Lost Its Throne Across Spain to Huawei

Kantar data have brought us a story that many already predicted: Huawei has surpassed in sales to Samsung in Spain. Really this is not a phenomenon of a day, but that the distance between them has been shortening over time. But the first time that there has been a life course has been in November 2016. The distance is minimal, Huawei had a share of 18.9% compared to 18.8% of Samsung, but it is enough to see a deeper trend change.

Samsung had a market that may not contribute significantly to its global figures in Spain but had totally dominated. By 2015, 40% of handsets sold in Spain were Samsung. And it is no longer so. You now have a hard competitor. How has it been able to pass this?

Purple: Samsung, Blue: Huawei, Orange: Apple, Green: bq, Red: LG

A single factor does not explain this turn of the Spanish market. And surely not only five acts. But we believe that these five explanations are key to understanding the growth of Huawei and the collapse of Samsung.

Huawei has greatly improved

Huawei is not a “Chinese brand” as they may be others who don’t even have a presence in Spain. We have a manufacturer of world importance, which is in a comfortable third place but which aspires to the first.

And all this is for several reasons: better Terminal, a massive investment in marketing and a specific plan in each country, with agreements with operators. Do you sound? Just what did Samsung to lead the world market.

The operators have flooded the market at knockdown prices

Anyone who has seen the catalogues of the operators have seen como han pasado offer Samsung for everything to take Terminal Huawei very competitive. And this has its impact. Spain, while the Terminal grant is no longer as years ago, remains a market purchase through the operator. And Huawei has played his cards well.

It is not surprising that they offer a Huawei terminal free or for very little per month on operators, and non-terminals that are wrong. For something the Huawei P8 Lite is the Samsung Galaxy J5 terminal best-selling in Spain from August to October 2016, above. And a third we have the Huawei P9 Lite.

Huawei has a range of very competitive entry

Spain is a country of mobile cheap. That was as revolutionary in its day Moto G and why the iPhone just not be as massive as in the United Kingdom or United States. And Huawei has done very well with this type of terminals.

Huawei is offering very good terminals in their ranges of input, terminals that free they cost less than 200 euros. So much that it has forced Samsung to cut margins at its most simple terminals and still not removed the image between them who are dedicated to this that their most simple terminals cost too.

The launch of the iPhone distorts the market in November

Kantar data indicate that Huawei has won to Samsung in Spain in November 2016. But this month there was a peak of Apple with its iPhone. The reason? The launch of the iPhone 7. This has made it difficult to compare, as Kantar does not give absolute figures data and is not possible to know if just iPhone users have been renewed (without affecting sales of Samsung and Huawei) or if some users Samsung have opted for iPhone at the time of renewal and this Bill passed.

Both things are possible and it is normal that there has been something of this effect. Samsung also has a share of the high-end and the presentation of the iPhone does not come you anything good. However, Huawei has less share in this segment, for the time being a presentation of a new iPhone should not have much effect on its sales.

Samsung has had a scandal without precedent

And finally, Samsung has had a brutal trip last year with the Galaxy Note 7. This happened Bill brand, in fact continues passing Bill whenever a plane says that it can not fly with this terminal. The impact in October were seen but can in November Yes.

Huawei has certainly managed to seize the moment and persuade some undecided. Although the scandal of the batteries that exploit is limited to Note 7 damage is to the brand as a whole. Will they recover, but at the moment has been a factor that contributes to this life.