As the day for the Galaxy S20 is almost over, a very important information about the new flagship models has been revealed: the cheapest S20 will cost from $ 849, quite close to the $ 899 price bracket applied. The Galaxy S20 + and Galaxy S20 Ultra will be priced from $ 949 and $ 1199 respectively.
Thus, after a year of testing with the Galaxy S10e, this year it seems Samsung will say an end to the strategy “first class two”. No longer a cheap version to boost sales, in 2020 Samsung will encapsulate the S10 in the super-premium segment (over $ 800), giving up the “normal” high-end game ($ 600 – $ 800) for rivals. Chinese and … Apple.
The confrontation between Apple and Samsung this year is a paradox. Absolutely dominating the premium segment, this year Apple’s new iPhone starts at just $ 700. Once the leader of the Android wave to popularize the smartphone to everyone, Samsung this year began in the higher price segment than the iPhone 11. More importantly, last year the Galaxy S10e also contributed. on the success of the S10 series: Counterpoint figures in July 2019 said the S10e accounted for 22% of the 16 million S10 models sold in the first quarter on shelves. Without this 22%, the S10 would even lose to the S9 in sales.
The smaller screen S10e, fewer cameras has taken the S10 series down to the “regular” premium segment ($ 600 – $ 800).
To understand Samsung’s decision to abandon the top-two strategy, we will need to look at the bigger picture. In fact, 2019 is a very successful year for Samsung in the mobile field as it has increased sales in the context of a difficult market. With a 20% market share (Counterpoint), Samsung is the absolute king of the smartphone market – especially when Huawei is still blocked by the United States from expanding globally.
Unexpectedly, the high-end segment did not contribute much to success in terms of sales. Even though the top of the 2019 series is only available for the last 3 weeks of the first quarter (released on March 8), by the second quarter Samsung has admitted “the top sales decreased compared to the previous quarter.” came out with the Galaxy Note10 when the South Korean giant insisted that “fourth-quarter profits fell from the third quarter as the effect of the flagship product launch had faded.” Through the financial reports, Samsung is insidious. Recognizing that the top sales are usually successful in the short term.
Unexpectedly, the culprit that made Samsung’s leading segment not so successful was the iPhone. From Q1 to Q3, the iPhone XR ranked first Ranking of best-selling smartphone models in the world. In fact, Apple is also the only brand to have high-end smartphones in all of the listed quarters, with the only exception being Huawei’s P30 discount in the third quarter of 2019.
Samsung also has a top smartphone, but 100% of the top Galaxy models are Galaxy A. In fact, in all 4 business results reports for the fourth quarter of 2019, Samsung calls the A-Series models at least. is once. Right from the beginning of the year, the Korean giant has conducted a wide-ranging reform with this mid-range / low-cost series, thereby gaining more and more positive feedback from users. The statement from market analysis companies also made the same statement, according to which Galaxy A is the most important product line for Samsung at the moment.
Face-to-face confrontation between the Galaxy S10e and iPhone XR has made Samsung realize a big lesson: It is impossible to compete with the top sales with Apple.
Once Galaxy A has solved the sales problem, Galaxy S needs to focus on profit.
As such, Samsung has no reason to launch another “second-place leader” to try to increase sales for the top-tier series. With Galaxy S20, profit and class goals need to be placed on top. A Galaxy S20e version can suck sales from the mainstream Galaxy S20 or S20 Ultra – removing the S_e line is reasonable. In place of the S10e, Samsung has unveiled the S10 Lite and Note 10 Lite duo: both of these products are from the old generation and therefore will be outstripped by the S20.
No more S20e, S20 series opens a new era for Samsung. In 2020, for the first time in history, Samsung will have a top-of-the-line series that is higher than the iPhone. Along with the growing attraction from the Fold series, Samsung is gradually positioning the top Galaxy devices to stand above Apple. Excessive price once contributed to the … success of the iPhone X, will this miracle happen to Samsung? Let’s see.