Apple aims to be the No. 1 smartphone… Samsung to pay for after-sales support and reinforcement of low- and mid-priced phones

Input 2021.02.23 14:28

Samsung to give out smartphones to Apple in the fourth quarter
Apple lowers shipment prices and strengthens mid-to-low-end phone lineup
Samsung powers mid-priced phones… Expanded SW support

With the title of No. 1 in the global smartphone market Samsung Electronics (005930)The position of is in jeopardy. This is because Apple has recently lowered the shipment price of the iPhone series, is strengthening its low-end models, and is rapidly dominating not only the high-end phone market, but also the mid-range phone market. Samsung Electronics is also working hard to defeat Apple’s pursuit by reinforcing post-support support for existing smartphones and increasing its market share by reinforcing the lineup of mid- and low-priced phones.

According to market research firm Gartner on the 23rd, Apple rose to the top spot in the global smartphone market in the fourth quarter of last year, surpassing Samsung Electronics (16.2%) with a share of 20.8%. This is thanks to the strong sales of the’iPhone 12′ series. Apple launched a new product in October, a month later than usual, due to a novel coronavirus infection (Corona 19) last year, and sales concentrated in the fourth quarter.

Despite the late release of the iPhone 12, Apple surpassed China’s Huawei (13.5%) on an annual overall basis, and rose to the second place with 14.8% following Samsung Electronics (18.8%). Gartner explained, “With the release of the iPhone 12, Apple recorded double-digit growth in the fourth quarter and outpaced Samsung Electronics,” said Gartner. “The fourth quarter of 2016 was the last to take the top spot in smartphones.”

Apple, which has adhered to the premium strategy in the past, launched the second generation of iPhone SE in four years last year after first introducing the low-end model’iPhone SE’ in 2016. With efforts such as lowering the factory price to 500,000 won and increasing the screen, the market has succeeded. The sequel to the 2nd generation iPhone SE series is expected to be released in the first half of this year. This seems to be a strategy that Huawei is trying to occupy the largest gap in the global smartphone market.

As Apple hit the market like this, Samsung Electronics also started to come up with countermeasures. By lowering the factory price of the Galaxy S21 series and releasing it a month earlier than usual, it put a check on Apple. The basic model of the Galaxy S21 was released for less than 1 million won.

The effect was obvious in the market. According to Samsung Electronics, the domestic sales performance of the Galaxy S21 series (January 29 to February 8) increased by about 30% in the same period (11 days) compared to the previous Galaxy S20 series. In the overseas market, the sales of the Galaxy S21 series increased by more than 20% compared to the previous version.

Samsung Electronics’ post-support system is also developing. Until now, Samsung Electronics has been evaluated for its strength in hardware after-sales service (AS), but lack of software (SW) support compared to Apple.

Apple supports the operating system iOS update on its iPhone for 5-6 years, but the Galaxy smartphone has only been supported for 2 years, resulting in many complaints from users. Apple’s post-support policy has helped to secure loyal customers while enhancing the iPhone brand image.

On this day, Samsung Electronics decided to expand support for security updates on Galaxy smartphones to at least four years. Supported by models released after 2019, regular updates are provided for more than 130 models worldwide. Last year, the support period for operating system (OS) updates for the Galaxy S series and Galaxy Note series was also increased from two years to three years.

In addition, Samsung Electronics is strengthening its Galaxy A lineup, which is a mid- to low-end series. In the case of the’Galaxy A31′, which was released last year, it is equipped with a quad camera that supports close-ups even at an inexpensive factory price of around 300,000 won and a 5000㎃h large-capacity battery.

According to Counterpoint Research, the most popular smartphone in Korea last year was the Galaxy A31, not the Galaxy S and Note series, which sold more than 1 million units. In raising the market share, low- and mid-priced phones played the best role.

Samsung Electronics is planning to release new A-series such as Galaxy A52 and Galaxy A72 in Europe and India soon, and launch it in Korea in the first half of the year. The new Galaxy A series also supports some flagship functions such as waterproof and dustproof. An official in the telecommunications industry said, “The smartphone functions are leveled upward, and there is no significant difference in use in real life, and the overall shipping price has also increased, so the price has become the most important factor in purchasing consideration.”

Lee Yun-jeong, a researcher at Counterpoint Research, said, “It seems that the A-series played a big role in the fact that Samsung Electronics performed well despite various adverse conditions last year. If we secure a position in the mid- to low-end market with the Galaxy S21 and foldable phone lineup, “We can expect more meaningful results in the year.”