Huawei’s 5G exclusion by the US and their allies have sparked growth for Samsung in the 5G sector. Until recently, the company’s main stream of revenues was based on producing computer chips, smartphones and displays.
However, from the moment Huawei started losing contracts due to fear over its 5G networks, Samsung has been active and made its biggest 5G deal to-date. The group has made a $6.6bn contract with US Verison to supply it with 5G radio access network (RAN) until the end of 2025.
This has boosted Samsung’s image as a credible 5G provider. Through this deal, Samsung could increase its market share as a 5G network provider in the US, leading the company to strike more deals in the future and establish it as a leader in 5G infrastructure.
On the other hand, Huawei, Ericson and Nokia still are the main leaders of 5G network, consisting of 70% to 80% market share. However, Samsung is gaining momentum quite fast as the company’s 5G market share has increased by 5% over a six-month period but this does not mean that Samsung is out in the clear just yet.
Samsung battles with its European peers for market share
Nokia will become BT’s largest supplier after it won an expanded deal to replace Huawei as a key supplier of 5G equipment in the UK. This is only an example of how ready European companies such as Nokia and Ericsson are to supply equipment from 2G to 5G, something Samsung is unable to do at the moment in Europe.
This gives a competitive advantage to Samsung’s European peers as they are very well positioned to win opportunities in countries which are cutting out Huawei. Despite this, Samsung argues that its 5G infrastructure is faster and more secure than other 5G network providers; however, this does very little to persuade buyers in the market.
In order for Samsung to gain higher market shares, the company acquired TeleWord Solutions, a Virginia-based network services provider. Through this endeavor Samsung aims to gain the expertise and infrastructure necessary to provide buyers in the market with 5G network as fast as possible.
Even though this will not be enough to place Samsung in the first place of 5G network providers race, it places the company on the right track to obtain a higher market share and paves the road for a relatively new and profitable market segment.