Samsung Grabs 50% Smartphone Market Share As Models Face Being Cancelled
Samsung did “incredibly well” in the Smartphone market last year snatching 50% of the affordable premium market as well as a big share of the premium market according to Gary McGregor Vice President of IT and Mobile at Samsung Australia.
Now the big South Korean Company is warning of a “serious imbalance” in the semiconductor industry with Samsung now looking at cancelling the launch of their next Galaxy Note.
“Processors and shortages are a serious problem said McGregor at the launch of the Companies new mid-range A32, A52 and A72 smartphones.
Among retailers and suppliers in Australia there are growing fears market shortages could slow economic recovery as the Federal Government cuts out JobKeeper.
McGregor said that a number of things had led to growth during the COVID-19 pandemic one of them being demand for smartphones that easily read QR codes needed for scanning into locations.
He said that the A Series was the #1 growing category for Samsung in Australia last year with one out of every two devices purchased being a Samsung device.
When asked whether Samsung ran the risk of upsetting their customers with the constant release of new phones which saw the Galaxy S20 replaced with a new model after just eight months McGregor said “I think people expect us to release new models. The people who do buy early are the early adopters and they expect this which could happen every six months”.
Talking about the market McGregor acknowledged that JB Hi Fi is now a big acquisition channel for Telstra, and he acknowledged that the retailer could take on other carriers in the future, a move that has been adopted in the USA with Best Buy selling access to multiple carriers.
McGregor also pointed to the Carphone Warehouse model in the UK as a multi carrier retailer.
“There’s a serious imbalance in supply and demand of chips in the IT sector globally,” Samsung’s co-chief executive and mobile chief, Koh Dong-jin, said at a shareholder meeting.
“It is hard to say the shortage issue has been solved 100%.”
Samsung was working with overseas partners to meet demand, he added.
Mr Koh signalled that Samsung’s release of a new Galaxy Note smartphone may now be delayed until 2022.
As a high-end model, “it might be difficult to release”, he said. “It could be a burden to unveil two flagship models in a year,” Mr Koh added.
The comments came weeks after Samsung released their new Galaxy S21.