Samsung is no longer a premium brand?7 out of 10 Galaxy sold are budget

Samsung has been struggling to sell Galaxy smartphones lately.In part, they have to do with satiety

market, partly due to a shortage of components against the backdrop of coronavirus restrictions, but the Korean media named another problem that can be considered more serious than those mentioned above - a decrease in profitability.According to the source, about 60% of devices sold this year are in the category under $200, another 10% are in the $200-300 segment, and only one in three smartphones sold hasThe price tag is above $300 (what share of flagships for $1000 is not specified).Experts predict that the drop in sales of premium smartphones with high margins will lead toto a drop in Samsung Mobile's operating profit in 2022 mayreach 20%.

Two key factors of this are identifieddisappointing phenomenon for the Koreans. The first is the iPhone factor: the share of the "apple" manufacturer in the premium segment has grown due to good sales in the Chinese market, where Samsung has been unable to gain a foothold. The second is that Samsung's sales are allegedly affected by Android's reputation as a system for budget or mid-budget devices in the same Chinese market (and not only there). The good news for Samsung is that it will retain its first place in the manufacturers' ranking, not least due to forecasts of a decline in sales of high-end devices next year. The Koreans will obviously try to solve the profitability problem by saving on the development of the Galaxy S23, which has already been leaked several times. Will it work? We'll find out in the new season of flagships, which starts this winter.

© Artur Luchkin.

Sourced from Hankooki.com