(Yicai  Global) Nov. 28 -- Chinese firms have come close to chase the world's  most popular smartphone maker out of Chinese sales charts. A Chinese  trade organization chief predicts that Samsung Electronics' upcoming  foldable screens will not be enough to fuel growth.

Samsung's  handsets have occupied less than 2 percent of the Chinese market this  year, Dongjin Koh, president of the mobile communication business  department, said in an internal memo that was leaked to media. Chinese  news website International Financial News under the People's Daily  carried the report yesterday, citing local newspapers.

A  Chinese consultancy suggests that the number is already lower. Samsung  has reduced its cellphone sales in China to 1.2 million units in the  third quarter, covering 1 percent of the market share, ASKCI Consulting  shows in its ranking which the Seoul-based company has not confirmed. 

In  2013, Samsung sold almost 20 percent of all cell phones in China,  ranking first, according to data from consultancy IDC. The market share  had dropped to less than 10 percent by 2015. 

China's  domestic cell phone makers are rising, Wang Yanhui, the head of China  Mobile Phone Alliance, said to International Financial News. Huawei  Technologies was the biggest phone retailer in China last year. The  company overtook Apple as the second-largest global handset seller in  the second quarter. 

Koh  put his trust in the upcoming foldable displays in the Galaxy series to  spur growth, according to the memo. The company cannot be saved by a  single cellphone series, Wang said, adding the firm's decline in China  is caused by a fading competitiveness in sales channels, advertising and  supply chain.

Samsung  ranks first in Europe and second in America while the Indian market is  also among the best, according to Wang. "Samsung will face a major  crisis once Chinese cellphones conquer the Indian market," he said,  adding Chinese firms are also looking to gain larger market shares in  Europe and the US.

Editor: Emmi Laine