By Kate Yuan

(JW Insights) Jul 28 -- Samsung is "going in the right direction" in China, the world's largest mobile market, as it seeks to raise its lagging market share by boosting premium offerings and ties with local content firms, said TM Roh, head of mobile experience at Samsung Electronics, Reuters reported on July 27.

“Third-party data shows the world's largest smartphone maker is making small gains in its single-digit market share in China. We are making efforts to reach Chinese consumers with products that fit the China market, through software optimisation that fits the China market, and I think the results are coming out little by little," Roh told reporters this week.

Samsung announces second-quarter earnings on July 27. It posted a 95% operating profit plunge to KRW0.67 trillion ($521.4 million), while sales slipped 22% from a year ago to KRW60 trillion ($46.8 billion). Samsung anticipates a gradual recovery in global demand for technology products and semiconductors in the second half of the year.

Roh said Samsung's mobile business set the goal of "recovering" the China market via premium products and services like its new flagship foldable phones Samsung launched on July 26, as well as strengthening partnerships with local content firms.

Samsung, which was the biggest smartphone vendor in China in 2013 with about a 20% market share, saw that plummet to 1% in 2018 then dip further below, overshadowed by Apple and Chinese vendors like Vivo, Oppo and Honor. But by March this year, Samsung had recovered a 1.1% market share, according to Counterpoint data.

The current trend of premium smartphone demand outpacing demand for more bare-bones models is likely to continue for some time, Roh said, as "mobile users' device replacement cycles are getting longer and longer in the global market," said the Reuters report.