Low Cutting-Edge HBM Sales Continue to Drag on Profitability, but We See Potential Recovery Ahead

Samsung has lost market share in the smartphone space over the past few years, ceding its top spot as of 2023. This was largely due to the improving capabilities of products from Chinese brands, which offer similar functions at a fraction of Samsung’s prices. Unlike Apple, Samsung and other Android brands do not have an ecosystem that deters switching between smartphone brands. We expect pricing pressures to mount for Samsung as competition within the Android smartphone space is likely to continue intensifying.