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Samsung Mobile Sales Fall 25%, 90% Now Mid Tier Models

Days out from a major Samsung mobile launch it’s been revealed that sales of the South Korean’s Android smartphones have fallen 25% in the last quarter and that 90% of their sales are now mid-tier models.

In Australia, Samsung’s mobile division refuses to release data re mobile sales, though they are quick to claim they are “doing well”, but they won’t provide basic numbers to qualify their claims despite Samsung Korea giving out detailed sales numbers.

ChannelNews understands that premium models do better in Australia than many other Countries.

According to the Counterpoint Research Samsung’s smartphone shipment in the second quarter dropped 25% from the previous quarter with the business only shipping 130 million devices in the first half of the year.

Some analysts are tipping that the Company will fail to reach its annual shipment target of 300 million for the entire year of 2021 due in part to component shortages and lockdowns due to COVID outbreaks.

Samsung said it shipped 60 million handsets during the second quarter, with mid-tier brands making up 90% of their sales.

According to Counterpoint Research, the company moved 76.8 million units of smartphones in the first quarter with the second quarter slowing considerably despite some markets such as the USA and the UK getting back to work.

Samsung said its smartphone sales dropped from component shortage, production problems from the pandemic and the second quarter being the traditional off-season.

The drop is also likely due to the company’s earlier-than-usual launch of its Galaxy S21 series of smartphones.

People familiar with the matter said Samsung has been adjusting its smartphone production schedule due to the global component shortage during the second quarter.

Before the shortage intensified, the company had plan to ship 300 million smartphones, but this target is not reachable according to insiders at the Company that yesterday reported a 54% jump in profits in Q2 off the back of strong component sales.

In bad news for their display production division Samsung is expected to cede its position as the largest OLED smartphone shipper to Apple who is has recently signed new deals with Samsung archrival LG.

Earlier this month, UBI Research had said Apple was the biggest buyer of smartphone OLED panels in the first half of the year at between 60 million units to 64 million units.

Samsung came in second at 55 million units to 56 million units.

As Apple prepares to launch its new iPhones in the third quarter, the gap between the pair is expected to widen in the second half of the year.

Apple has ordered 20% more components for its upcoming iPhone 13 series compared to iPhone 12.

During yesterday’s conference call, when questioned about the impact of the company no longer launching the Galaxy Note series which usually sold 10 million units a year, Samsung said it plans to popularize its new foldable products while maintaining the sales momentum of its Galaxy S series.

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