Samsung Reveals How 2020 Went & Where It Is Going In 2021
Samsung Australia is facing 2021 looking for growth after a “highly successful” 2020 when the company expanded its mobile range offering with new A series and S Series smartphones adding over one million new customers along the way.
According to Garry McGregor Vice President at Samsung Mobile, the Australian market for mobiles went backwards by over 16%, while the decline at Samsung was only 5%. He was talking ahead of this weeks Samsung Galaxy S21 launch.
Making up for this decline was 5% growth in market share which delivered higher profit yields for the South Korean Company.
The addition of over one million new customers was “The biggest single shift to the Samsung Galaxy family at Samsung he said”.
McGregor said that the Company has also recorded record growth online with analysts tipping that disgruntled carrier consumers are now buying either direct from a brand or online at the likes of JB Hi Fi.
“This has given us a really solid start to 2021 he said.
McGregor said that the introduction of Samsung A Series and A series smartphones in 2020 had already seen consumers gravitate to a top end premium Samsung smartphone.
“Our switching data is already showing this with the Samsung Galaxy S20 FE contributing to this move” he said.
He said that the impact after launching cheaper Samsung Galaxy devices had been “minimal” on the premium end of Samsung’s product range.
He admitted that the unit growth came from the value premium market while the main profits were generated from the premium Samsung smartphone category.
“When it comes to profitability, we are really well balanced across our entire product category he said”.
McGregor claims that the headphone bud’s category is set to “double” in 2021 as consumers switch from cord or over ear headphones to a new generation of buds similar to the new Samsung offering which will go on sale shortly in Australia.
In the tablet market which is forecast to decline Samsung is confident of growth due in part to their 2021 pen strategy that will see the Company selling a $59 standalone pen that can be used across current Samsung model smartphones and tablets.
“The pen allows consumers to express themselves more and we believe it will be popular”. McGregor said.
He is also calling for both carriers and retailers to address their add on sale strategies.
He believes that retailers are missing an opportunity to on sell buds and other Samsung accessories when selling a smartphone due in part to different buyers handling acquisition of category products.
“The audio product and the mobile product are often in different areas of a store”.
McGregor believes that retailers need to address this issue as they are letting go margin.
“It’s a bit like McDonalds asking customers whether they want fries. Retailers need to adopt the same approach” he said.