Unveiling the secret behind the new strategy of Samsung phones-Hi-tech Fashion

The fact that Samsung followed Apple’s lead in cutting production of mid-range smartphones is its landmark move.

Following the effects of the Covid-19 pandemic on global supply chains and overall consumer demand, the smartphone market grew slightly last year. However, this sales metric has yet to surpass the performance of 2017, 2018 or 2019.

Triangle Galaxy S22.

While the world’s top smartphone vendors enter 2022 expecting both demand and output to return to the mobile industry’s pre-pandemic levels, all signs are pointing in the opposite direction.

According to Canalys, phone sales in the first quarter fell 11% year-on-year “in the face of unfavorable economic conditions”. Just like Apple and Samsung Concerned, with the latest information coming from component suppliers, experts and industry insiders, the outlook for the rest of the year is not very positive.

Trouble of “family” Galaxy S22?

The recent Korean report does not mention any Samsung devices or the Galaxy S22, Galaxy S22 + and Galaxy S22 Ultra trio. However, rumors suggest that the company is cutting production “not only mid-range smartphones but also flagship models (high-priced phones).”

Galaxy S22 Ultra.

Despite attracting attention as soon as it was released, the Galaxy S trio has gradually cooled down. Components have “increasingly high prices globally” and the conflict between Russia and Ukraine is considered the two main reasons for this rather serious crisis, which could lead to the company having to reduce about 30 million Galaxy phones. production in 2022 compared to the original target.

Of course, the technology “giant” can’t handle the second reason, the rapid drop in demand in the past few months can explain the Galaxy S22 Ultra’s price drop deeper recently.

The mid-range Galaxy A53 5G is also cheaper than expected, and the same goes for the Galaxy A13. However, its smartphone production target for 2022 is still extremely high, at about 270-280 million units.

The prospect of foldable smartphones

If the above prediction is correct, Samsung’s actual sales will decrease compared to 2021, to only 272 million.

Last year, the market leader produced around 300 million smartphones. From this data, the technology world expects Samsung’s total global phone sales to be around 245 million units by 2022.

Galaxy Z Flip 3.

A 10% drop in output is clearly a bad outcome, especially given the “unfavorable economic conditions”, the war in Eastern Europe and the COVID-19 lockdown in Asia affecting the supply chain. However, sales of foldable smartphones are still expected to increase by 13-18 million units.

Overall, the future success of this year’s Galaxy Z Flip 4 and Galaxy Z Fold 4 won’t be particularly impactful… but in the long run, foldable phones could turn out to be the dark factor. important to Samsung’s overall growth potential.

High-end foldable smartphones could even help Samsung differentiate itself from Apple. The “Apple” side has now adjusted its production plan this year due to the low popularity of the iPhone SE 3 and considering the demand of the iPhone 14 series in the coming months.

Recent changes by Samsung and Apple to the market have signaled many systemic challenges for the smartphone market as a whole.