Smartphone makers, led by Samsung and Apple, have always raised prices for new smartphones in the past few years. However, the number of users in this segment has decreased. Recent data shows that competition in the super premium segment is becoming more difficult than ever.
Apple and Samsung last week reported second-quarter revenue, with no positive signals in the high-end phone segment. With Apple, iPhone sales fell 12% from the previous year and its net income fell 13%. Analysts believe that iPhone XR, Apple's new and cheapest version at $ 749, has become more popular than the $ 999 iPhone XS and iPhone XS Max $ 1,099. At the same time, people are delaying purchases to wait for the iPhone 11 to be released in September.
iPhone XR and Galaxy S10E are priced lower than other flagship "brothers"
Meanwhile, Samsung's total mobile phone sales rose about 7% to 24.3 trillion won (about $ 20 billion) – and is leading the global smartphone market share, according to Strategy Analytics. But, profits are largely due to Samsung's A Series products. Its mobile device's revenue is 42% lower than a year ago and sales from the Galaxy S flagship line fell due to "weak sales of the Galaxy S10 line and stagnant luxury product demand," on Samsung. said.
Recent phone prices are constantly increasing, and users' phone upgrade frequency is no longer as high as before. If someone buys a 1,000 USD phone, they tend to use it longer than before. In the US, consumers "live" phones on average every 3 years, instead of 2 years as before. At the same time, software updates also help older phones have more new experiences, hardware designs don't change much from year to year and cheaper devices also have previous features. This is only in expensive top phones.
For many people, that's enough!
"Wealth is more about software than hardware," said Creative Strategies analyst Carolina Milanesi. "The device's life cycle is longer because users are getting more from the same device".
The victory belongs to the cheaper segment
The phone may be more expensive, but that doesn't mean that users will buy it. For Apple and Samsung, high-end flagships are less attractive to users.
CNET correspondent Scott Stein called the iPhone XR "the best iPhone on the price" and said it gave users "most advantageous features of iPhone XS at a lower price". CNET reporter Jessica Dolcourt called the Galaxy S10E "a dream come true for people who like small phones".
Both versions are the cheapest of the flagship
S The key is being proven to attract buyers. Canalys said the iPhone XR is "silver lining" in Apple's second-quarter sales. The research firm estimates that the device accounts for about 38% of Apple's shipments in May.
These are not the only phones that are bought more than expensive flagship versions. In the case of Samsung, the company's Galaxy A product line attracts buyers. The company said that its total smartphone shipments have increased from the first quarter to the second quarter thanks to "strong sales of the new Galaxy A Series, including Galaxy A50 and A70".
Many of these devices have the same features as the high-end phone lines that were released earlier, and even have features that cannot be found on the Galaxy S and Note.
For only $ 350, customers can buy Galaxy A50 for Verizon and other networks in the US. The device includes a 6.4 inch screen and three cameras on the back. Both of these features are also available in Galaxy S10 Plus with a starting price of $ 1,000.
Galaxy A80 became the first and only device and so far of Samsung equipped with "pop-up" camera, which was launched in April. The camera part of the phone will automatically turn on when switching to selfie mode and has a 48 megapixel main camera, 8 megapixel ultrawide and time sensor can be used for face recognition. The A80 also has a "smart battery" to learn how to use the application and daily user habits to optimize phone power consumption. No Samsung flagship device has a rotating camera, but a smart battery will appear in the Galaxy S10.
The Galaxy Note 10, introduced by Samsung next week at an event in New York, is not expected to be a big jump from its predecessor but will attract fans of the Note series. It is unclear how many people will spend $ 1,000 to upgrade, but it probably won't have a "pop-up" camera.
Finally, Samsung also plans to release Galaxy Fold – the first phone folded in September after fixing the problems. The company will also promote "the 5G smart phone line with the goal of continuing to lead the new market".
None of these devices will be cheap, but Samsung is counting on them to help revive phone sales.
"New devices, from A10 to A80, account for more than 50% of Samsung shipments in the second quarter", Canalys noted.It is expected to boost the growth of Samsung products in the rest of the year".
L.A – According to the CNET