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Why Samsung is about to take over.

So you might know that right now there’s growing tension between the us and china it’s probably not good news for u.s companies it’s almost definitely bad news for chinese companies but for korean samsung it’s like the stars are lining up i’m not talking a small victory here i think this is samsung’s big shot at world technological domination if we take a look at the top smartphone vendors globally one thing stands out that huawei is huge in the last five years this company’s grown from five percent market share to 20.

That’s ludicrous this company was the single biggest threat to samsung’s mobile operations but now is where i think that ends the us ban means that huawei can’t offer google apps they can’t build their own flagship chips and now just suffers from a general lack of trust and without these things i think it’s just a matter of time before huawei returns to just serving the chinese market so just theoretically if we took huawei out of the picture samsung becomes a clear number one leaving only really xiaomi as a realistic android rival and don’t get me wrong xiaomi will also benefit if huawei disappears.

They’re already managing to scoop up current huawei users looking for an alternative with these attractively priced globally available devices plus xiaomi’s putting particular emphasis on the fact that their phones can run google play services so as not to be confused with their other chinese counterpart but you see this is the issue that xiaomi faces a lot of the people who are unwilling to buy a huawei phone because they don’t trust it might also not be willing to buy from other chinese brands the us banned chinese huawei they banned chinese ZTE a few years before that they literally just announced a ban for chinese tick tock like a week ago it’s not looking good for chinese brands in general and here’s the thing right the worst this u.s china relationship gets the better samsung does.

Going back to that list pretty much every one of samsung’s main competitors oppo vivo and even a lot of companies sitting in that other section like real me they’re all chinese but samsung dodged that bullet by being a company that is korean and one that is publicly withdrawn from manufacturing in china instead moving to india and vietnam and guess what those two just so happen to be regions that the us is trying to strengthen its relations with so samsung has kind of just found themselves in a position where people want their phones more and they started responding to it this new galaxy s20 fan edition was literally launched with the very purpose of capitalizing on increased appetite for samsung and i would fully expect them in the next year to start releasing more models than ever oh and there’s more you might be aware of apple is very soon planning to launch their first ever 5g iphones.

Now generally when apple does this when they introduce a feature on their phones that has actually been around for some time they do it in a big way apple is often the company to catapult relatively niche features into the mainstream they did it with voice assistance they did it with fingerprint scanners they’re about to do it with 5g and the reason this helps samsung is that believe it or not they are one of the few companies that builds 5g infrastructure now there’s a pretty reasonable chance that you had no idea samsung did this because the main three companies are huawei nokia and ericsson but samsung is fourth and i think they’re about to climb see with this political conflict china is separating from the west i mean huawei has physically been ripped out of a lot of europe’s 5g infrastructure and it’s looking like china might retaliate in the exact same way that the west has vetoed use of huawei it’s very possible that china will just veto the use of european companies like ericsson and nokia and would you believe it that leaves samsung as the only neutral party who could potentially supply to both sides of the conflict and i could bet my bottom dollar they’re gonna try literally a couple of weeks ago samsung signed a five-year deal with verizon in the u.s to build 5g infrastructure.

For them they’re already wrestling in basically offering themselves as a china-free alternative to huawei 5g they’ve just recently dropped over 20 billion dollars into 5g and ai and something as well on their way into planning their 6g infrastructure to come in 2028 and see the better samsung’s networking business does the better their smartphone business does if samsung starts building really close ties with verizon and other carriers then that puts samsung’s hardware right in the limelight for us customers because carriers are the ones selling the phones but there’s even more to this something like 30 of samsung’s revenue right now is actually from its semiconductor business which sells chips and whilst this division might lose a bit of money in the short term because they used to sell bits and pieces to huawei for their phones in the long term

It’s looking pretty good for starters huawei was one of the few other companies who made mobile chipsets every year they’d come up with an increasingly advanced kirin chip to power their flagship phones but the us ban makes this almost impossible it’s looking likely that after 2020 oh i just won’t be able to do it anymore so that 20 percent of the market that used to be powered by kirin is now open to being powered by samsung plus looking at the next generation chipsets are going to be built on the tiny five nanometer fabrication process and it looks like samsung was ready for this it looks like samsung has built the processes to be able to manufacture five nanometer chipsets with relatively high efficiency and that means two things a that samsung’s next exynos processors should be way higher performance and this is backed up by ice universe

Who also adds that in 2022 they’re gonna start building in amd’s graphics cores which might even flip their current achilles heel into a strength and b that apparently samsung as well as building their own have been picked to build the next qualcomm snapdragon 875 chips too samsung’s supposed efficiency means that they can offer a five nanometer chip to qualcomm for less than tsmc who qualcomm usually works with so samsung rakes in money from qualcomm and at the same time might just be able to build their own exynos chipset which is comparable and if they can do that they will fly because while samsung can then happily use their own exynos chips in their phones for no extra cost every other android maker will either have to fork out an extra thirty to fifty dollars to buy one from qualcomm or come straight to samsung and buy an exynos chip for their phones either way samsung wins they’re in a position.

Where they can leverage their 5g and their chipset business to push their mobile phone business forward i mean obviously they do still have apple to compete with but if us cuts ties with china then i think even apple will struggle because it’s very possible that china will retaliate with the same sentiment no one in china buy an iphone and even though this doesn’t really directly help samsung because samsung has almost no market share in china it would hurt apple besides a lot of apples manufacturing happens in china too which means that if they are pressured to pull out it might well mean they have to raise their prices for the rest of the world but to be fair just generally i would argue that samsung isn’t particularly worried about apple i think the average consumer is actually quite averse to jumping between android and ios which means that if chinese android brands fall in popularity their users are way more likely to turn to samsung as opposed to iphone plus samsung just serves a much wider net of users than apple everything from the budget section which apple doesn’t dare build for to foldables apart from chinese companies.

The only foldable competition samsung faces is from motorola they would pretty much have the entire foldable market so the us and china seem to be falling out and intentionally or not i feel like samsung is in the perfect position to gain from this and because a lot of the world follows the us’s lead if this carries on which is looking like it will then this won’t just be some small win for samsung in the united states this will be a global victory and it could well be self-reinforcing if all of a sudden 40 of smartphone users become samsung users then samsung’s going to sell more appliances they’re going to sell more tvs and more services all of which will be made to work with each other .

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