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Samsung On A Roll As Demand For Premium Sm artphones Surge

Samsung is on a roll with demand for the Companies products during the COVID-19 epidemic, in particular their new premium Galaxy Note 20 smartphone and S20 Ultra device surging during the past six months.

The Korean Company also said that they are witnessing a surge in demand in for “Open Market” devices with growth during the past 12 months above 50%.

According to Samsung Mobile Vice President Gary McGregor the Company has been able to keep up with demand for their products despite a major reduction in air freight to Australia.

“WE are now using a combination of sea freight and air to get access to supply which due to Samsung manufacturing in Vietnam has touch wood remained consistent” he said.

When COVID-19 hit many analysts were tipping a flight to budget devices, but this has not been the case according to McGregor who later this week will launch a new Galaxy Z Fold 2.

He said that while their A Series device have been popular so has their premium 5G smartphones that have a new suite of Microsoft and Office 365 integration.
“What we are seeing is a massive shift to open market devices with research showing that JB Hi Fi is proving very popular because they are seen as delivering best value out there” said McGregor.

He said that the emergence of Flip or two screen devices had resulted in Apple users moving to an Android platform and that he anticipates that continuing with the new Galaxy Z Fold.

Where there has been softness is in the $1,000 to $1,500 market where customers were on a 3-year plan. These customers in a lot of cases did not realise that their plan had come to an end and had not bought a new handset.

He said that Samsung was now working with carriers to prompt consumers to buy an additional SIM connection when buying an additional networked device from the Korean Company.

Currently Samsung is offering a SIM upgrade with Telstra.

One area that is still struggling to grow is tablet sales with Samsung having recently released a new 11” and 12.4” tablets.

“Consumers appear to be buying large screen smartphones as opposed to a tablet especially as the smartphone has a lot more functionality for the active user who today is doing video calls and using their smartphone as a replacement for a notebook or tablet” he said.

“The functionality built into a Samsung device is a lot more than just a superb camera. You have access to DEX and a full suite of Microsoft Office 365 applications” he added.

He said that a move to cloud based apps and consumers wanting instant access to cloud content along with features such as a built in pen found in the new Galaxy S20 Note was driving sales as people working at home looked for more functionality from their mobile device.

He claimed that COVID-19 had seen more people online and that consumers today were video streaming and that information marketing had resulted in “More people being informed” on what a device can deliver than ever before.

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