Samsung Electro-Mechanics’ share in the low-cost phone market ↑ following the Galaxy A52 and 72
Intensifying competition between camera module makers…
Samsung Electro-Mechanics supplies camera modules to Samsung Electronics’ low-cost smartphones with low specifications. There are concerns that Samsung Electro-Mechanics’ share in the low-cost phone camera module market will increase and the profitability of the rest of its partners will deteriorate.
According to the industry on the 15th, it is known that Samsung Electro-Mechanics was selected as a leading company in developing rear camera modules in a recent bidding (bidding) for Galaxy A22 parts conducted by Samsung Electronics’ wireless division. Leading development companies develop camera modules with Samsung Electronics and secure large quantities before launching new products. The Galaxy A22 is expected to be released in June.
The rear quad (4) camera module of the Galaxy A22 is composed of 48 megapixel, 8 megapixel, 2 megapixel, and 2 megapixel cameras. The composition is the same as the previous Galaxy A21s. The front camera of the Galaxy A22 is also 13 million pixels, the same as the previous one. The front camera is supplied by KoAsia.
The Galaxy A22 is a low-cost product aimed at developing markets such as India, but has a lot of sales. According to market research firm Omdia, the previous Galaxy A21s of the Galaxy A22 sold 19.4 million units last year, ranking 5th in global sales by model. Among Samsung Electronics’ smartphones, the Galaxy A51 (23.2 million units, 4th place) is the second largest.
The Galaxy A21s is equipped with a 5000mAh battery on a 6.5-inch liquid crystal display (LCD) screen. It was sold for Rs 16,498 (about 260,000 won) in India and 297,000 won in Korea.
Samsung Electro-Mechanics can expect to eliminate fixed costs by supplying the Galaxy A22 rear camera module following the Galaxy A52 and A72 rear main camera module alone. The Galaxy A52 and A72 are popular models with annual sales totaling 30 million units, and the main camera supplied by Samsung Electro-Mechanics has high specifications. Samsung Electro-Mechanics supplied camera modules mainly to flagship products such as Galaxy S and Note until last year, but entered the rear camera market of the Galaxy A series this year.
An industry official was concerned that “Samsung Electro-Mechanics will expand its share of camera modules in low-cost Galaxy, which could deteriorate the profitability of the rest of its partners.” Given the fierce competition this year, if Samsung Electro-Mechanics supplies camera modules from mid-price to low-priced Galaxy A series, the rest of the partners will be difficult to achieve economies of scale as the proportion of models with low unit prices and low volume increases. The production line needs to be changed so often, which reduces efficiency.
Samsung Electronics’ camera module partners saw a significant decline in operating profits last year. By company, operating profit declined by 47% for MCNEX, 60% for Partron, and 30% for Cammsys. Power Logics turned to a deficit. Although shipments of Samsung smartphones are expected to increase year-on-year this year, Namugawa CoAsia has already entered the Samsung Electronics rear camera module market in addition to the existing MCNEX, Patron, Power Logics, and Camsys.
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