Something Wicked This Way Comes . . .

There has always been this fear that Chinese technology firms will knock-off major Korean businesses like Samsung or LG and now, these concerns seem to be coming closer to realization: Samsung has lost its top spot in cellphone manufacturing, in China, to an upstart Chinese firm Xiaomi – which makes an android-varient OS and gear that looks a whole lot like Apple’s.

Oddly enough, even their founder looks like a Steve Jobs knock-off.  Can’t he manage something original!?

A Steve Jobs knock-off?
A Steve Jobs knock-off?

Update

Right on the heels of this news, Samsung and Apple have called a truce to their legal pugilism outside of the US.  I suspected that something of this sort would happen and, yep, it certainly did.

  • redwhitedude

    Not surprised. Chinese will favor their own domestic brands over foreign ones. They will engage in all sorts of shenanigans to make sure they ultimately dominate the domestic market.

  • wangkon936

    Wouldn’t be the first time an East Asian country did that.

    Da da dum…. I’m here all week folks!

  • RElgin

    Okay but what do you think Samsung’s strategy should be to this since Xiaomi will obviously try to market their products elsewhere?
    This may likely be the end of Samsung throwing money at their marketing if not completely revising it.

  • TheLionStillHasClaws

    The circle is now complete. When I left you, I was but the learner. Now I am the master.

  • wangkon936

    I will post my thoughts later.

  • kaizenmx

    Phone market is now saturated as much as laptop market. And chinese company trying to sway general consumers point of view about chinese electronic products will need a massive re-education, which is not something that can be done over the night.

  • wangkon936

    It just means that the smart phone market is getting increasingly commoditized, not that one has technical superiority over the other.

    Nokia lead Samsung in India for years. It didn’t mean that Nokia was technically superior to Samsung, it just meant that India’s market wanted less capable, but cheaper, feature phones.

  • brier

    Other’s playing Samsung’s game? They should have patented the ‘fast follower’ strategy to keep others from copying them.

    Switch from my Note 1, to LG’s G3 and I am glad I did.

  • redwhitedude

    Time to move on. Samsung should shift its focus to something else.

  • redwhitedude

    I think Samsung should begin shifting to something else. Ultimately they will be undercut by these competitors in other markets.

  • Aja Aja

    Now a days, smartphones are now becoming commodities. Anyone can source components and slap together a phone.

    I look at Xiaoming’s market share, and it’s 98% Chinese market. On the other hand, Samsung actually increased their market share in North America last month. Xiaoming can try to market their phones outside of China, but they have a long long ways to go in convincing North American/European customers that Chinese made phones are any good, and that the Chinese government isn’t snooping on them. China’s reputation is so bad now because China shot themselves in the foot.

  • redwhitedude

    Just goes to show how reliant they are on government support. Without it they can’t stand on their two feet outside of China. Another thing that Chinese brands have to deal with is that they might be viewed as a security risk since they enjoy cozy relations with government and may actually facilitate chinese government with snooping around.

  • Aja Aja

    China went after Apple, Google, now they’re after Microsoft. Korea’s Line and Kaokao Talk’s service was abruptly ended by Chinese government without explanation. Yet the Chinese are flooding into buying the stocks of those two messenger services.

    So I’m confident that all this talk of Chinese dominance is just that, dominance in the Chinese market helped by their own government. I don’t see any dominance of Chinese brands outside of China. Haier? Huwei? Where are they in global sales rankings (outside China)?

    China has pissed off so many people outside of China, and many people are leery of their products. I don’t think people will easily trust Chinese brands where items depend on brand name values. Too many people trying to purposely boycott Chinese made goods where they can.

    Not saying that things could change in the future when Chinese brands do better with brand image, like Korea did. But that it’s going to take a long time for China to improve its poor image.

  • RElgin

    Huwei was working on a deal in Canada – similar to what was going on in Korea – but now, maybe that is not a popular notion.

  • redwhitedude

    Chinese are going to have a hell of a time trying to earn the trust. That compounded with the perception of being cheap and shoddy by some.

  • RElgin

    They provide the manufacturing base for many western firms (Samsung, Apple, etc), however they do have QC issues to deal with.

    Nothing is impossible.

  • Sumo294

    Smartphones are ultimately just hardware. The money in the future will be in apps and platforms. Google never really gave a crap about smartphones–they just wanted a negotiating tool as a hedge against companies trying to ditch their android platform. The Chinese are simply willing to accept profit margins no other country or company in their right minds will embrace.

  • redwhitedude

    It is possible if they change their ways. Nobody is going to trust them with their knowhow especially more recent knowhow to product the latest and greatest which will require better educated work force in China.

  • redwhitedude

    Well the chinese could have issues further down the road if they make decisions based on politics rather than economics all the time. Also they are not necessarily in sound shape on how they make money. They rely on selling tons of stuff since their margins are going to be sucky, seeing that they produce relatively low end goods. Look at how they waste it on property bubbles just to pad stats and pretty much prop up a lot companies that may be should be better off letting them go bankrupt.

  • smithington

    Next thing you know they’ll make it a law http://bit.ly/UZofQu

  • dayvmattt

    Don’t worry, everyone! Tizen will save Samsung!

  • redwhitedude

    I don’t know about you but I just use my smartphone with no particular attachment to a brand. As long as it is a good quality smartphone that is fine by me.