Samsung’s 500,000 won’cost-performance phone’ comes out… The secret of the model name of the Gal A series

Samsung Electronics drastically reinforces the product specifications (specifications) of the Galaxy A series, which are popular smartphones, and is also rolling up its arms in marketing. In the global market, it is interpreted as a strategy to respond to the’progress of Chinese phones’ and in the domestic market to target’LG vacancy’.

Samsung Electronics held the’Galaxy Awesome Unpack’ event online at 11 pm on the 17th (10 am Eastern time in the US) and unveiled two types of Galaxy A series. This is the first time that Samsung is holding a global unpack event for popular phone models.

The products to be unveiled in this unpack are known as Galaxy A52 and Galaxy A72. The two digits attached to the model name of the Galaxy A series mean the specification and model number, respectively. The larger the number in the first digit, the higher the specification, and the larger the number in the last digit, the latest model.

The Galaxy A52 has a 6.5-inch front display and the Galaxy A72 has a 6.7-inch display. Both models are known to run quad (4) cameras, including a 64 megapixel main camera. It has optical image stabilization (OIS) and IP67-rated waterproof and dustproof (meaning that it is protected from dust and water depths of 1m), but it has been applied only to premium grades.

OIS is a technology in which the gyro sensor of the camera module detects the movement of the smartphone and compensates for shaking. The part process is difficult and the unit price is 2 to 4 times more expensive than the existing auto focus (AF). The waterproof and dustproof functions have been applied only to flagship phones since 2018. The Galaxy A72 also supports 3x optical zoom and 30x space zoom.

It is reported that the price of the Galaxy A52 is around 500,000 won, and the Galaxy A72 is around 600,000 to 700,000 won. It is about 700,000 to 900,000 won cheaper than the factory price of the Galaxy S21 Ultra (1452,000 won), which was introduced in January.

Samsung Electronics is putting such efforts into the Galaxy A series because the status of entry-level models in the entire smartphone business has grown. Recently, the demand for popular phones has increased due to changes in consumer perception that emphasize cost-performance (excellent performance for the price) and advancement of Chinese brands.

According to market research firm Omdia, six out of the top 10 best-selling phones last year were mid- to low-end phones. Apple’s iPhone ranked first and third, while the second was the mid- to low-end iPhone SE. The Samsung products in the top 10 were the Galaxy A51 (4th), A21s (5th), A01 (6th), and A11 (8th), all of which were the Galaxy A series.

Due to the strong preference for premium phones, the domestic market, which was called’the grave of mid- and low-priced phones’, also changed the game. According to Counterpoint Research, the Galaxy A31 sold the most in Korea last year. Since its launch in May last year, the A31 has been well received for its quad camera, 5000mAh large-capacity battery, and Samsung Pay support, even at an affordable price of 300,000 won.

In addition, as the composition of the mid- to low-end phone market has changed, opportunities have emerged for Samsung Electronics. China’s Huawei sold the mid- to low-end brand honor, which sold 70 million units a year due to US trade sanctions. In Korea, LG Electronics, which had a market share of 13% last year, is considering the sale or withdrawal of the smartphone business.

However, it is evaluated that other Chinese companies such as Xiaomi and Oppo, not Samsung Electronics, took the reflective profits from Huawei’s sluggishness. Counterpoint Research said, “Last year, Huawei’s market share in the European smartphone market fell 7% from the previous year to 12%, while Xiaomi’s market share jumped to 14%.” In particular, Xiaomi’s shipments in Spain and Italy increased by 90%, making it the third largest operator in Europe. Oppo also increased its market share from 2% to 4%. On the other hand, the share of Samsung Electronics is 32%, which is a steady step compared to 2019 (31%).

Some point out that if you look up the performance of the Galaxy A, sales of premium phones can decrease. It is concerned about carnivalization (a phenomenon in which new products are eroding flagship products). In particular, focusing on low- and mid-priced phones with relatively low margins can deteriorate the company’s overall profitability.

No Geun-chang, head of the Hyundai Motor Securities Research Center, said, “We have to say that users of premium phones such as Galaxy S and iPhone are already fixed, and they rarely change to the Galaxy A series because the performance of mid- to low-end phones improves.” “As the market environment changes, Samsung The former strategy to improve the performance of mid- and low-priced phones and diversify the lineup is very effective.”

Reporter Park Hyung-soo [email protected]