How has Samsung lost its top position in the smartphone market?

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Samsung Electronics has lost its top position in the smartphone market to Apple.

Samsung Electronics has been surpassed by Apple in the global smartphone market. This shift occurred in recent quarters, with the company experiencing weak earnings and declining share prices.
Lagging in Key Technologies
The South Korean firm has faced challenges in keeping pace with rivals in crucial technological areas. Specifically, Samsung has fallen behind in advanced memory chips, such as High Bandwidth Memory (HBM) chips, which are essential for artificial intelligence (AI) projects. This has impacted its competitiveness, as seen in its semiconductor business where it trails behind companies like SK Hynix.
Broader Business Challenges
Beyond semiconductors, Samsung Electronics has also experienced a downturn in other sectors. The company has been suffering from weak earnings and sagging share prices, reflecting broader difficulties in its business operations. This overall performance contributed to a challenging period for the tech giant, even impacting its stock performance significantly last year.
Leadership Changes and Market Dynamics
These market shifts occurred during a period of significant leadership transitions and scrutiny for Samsung. The company's co-chief executive officer, Han Jong-hee, who oversaw the consumer electronics and mobile devices division, recently passed away due to cardiac arrest. This leadership vacuum comes at a time when the company has acknowledged its failure to adequately respond to the rapidly evolving AI semiconductor market.

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How has Samsung lost its top position in the smartphone market?

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