Samsung Electronics had the best smartphone sales growth in China during the first half of the year, according to new media reports. Samsung's revenue in the Far Eastern country went up to $16.86 billion over the first six months of 2017, which is 14 percent higher compared to the same period last year. This also makes China Samsung's fastest-growing market in the second quarter of the year. For added context, its sales in the United States jumped by 9.4 percent, while revenue in Europe increased by eight percentage points. The South Korean tech giant's earnings in other Asian countries and Africa also climbed by approximately nine percent. Overall, the global sales of Samsung Electronics reached $86.81 billion during the said period, marking a 9.9 percent year-on-year increase.
The key driver of Samsung's recent success is the high global demand for its semiconductor chips and displays, industry watchers believe. More specifically, the DRAM and NAND chips produced by Samsung are currently sought by numerous smartphone makers and right now, most of the memory chips used by OEMs are sourced from three major suppliers - SK Hynix, Toshiba, and Samsung, the largest of the three. Due to the increased demand, the trio recently struggled to keep up with the market, which led to substantially increased prices. There are no locally made alternatives that the Chinese companies could turn to and are forced to buy foreign chips despite all of the price surges that the market started recording since the turn of the year.
A similar scenario is also observed in the display industry; while other display manufacturers are catching up, Samsung still produces the majority of OLED panels that are used for smartphones and tablets. (Super) AMOLED displays generally offer much better contrast and wider color gamut compared to LCD modules, which is why they have been becoming more popular in recent times. Within the past few months, Samsung has supplied small to mid-sized panels to smartphone makers like Huawei, Oppo, and Vivo. Given how it will still take years before its rivals may catch up with its production capabilities, Samsung's sales in this segment should remain strong for the foreseeable future.