Samsung’s phone fortunes wane as COVID-19 hits 5G phones in Europe and U.S.

SEOUL: When the coronavirus outbreak in China disrupted global smartphone production in February, Samsung looked set to weather the crisis better than most thanks to its limited exposure there and launches of pricey 5G phones. Its fortunes are reversing.

The world’s biggest smartphone vendor, Samsung Electronics Co in full, warned on Wednesday of a significant drop in mobile earnings in the second quarter, as recession fears dampen demand for high-end models and carriers in major markets delay the rollouts of fast 5G networks.

The COVID-19 pandemic is hitting all vendors hard. But Samsung’s strategy of focusing on 5G in advanced markets like Europe and the United States – it captured nearly three-quarters of global 5G phone sales last year – plus dwindling market share in some emerging markets could put it in a deeper quagmire.