Samsung Electronics, which is currently facing a direct hit from COVID-19, will look to bounce back in the second half. It is understood that Samsung Electronics is planning to launch a new strategic smartphone every month starting from August. While the global smartphone market has started to show signs of recovery recently, Samsung will look to grab opportunities to bounce back while the materials and components industries that have suffered greatly due to COVID-19 will look to vitalize themselves.
According to relevant industries, Samsung Electronics is planning to launch a new strategic smartphone every month between August and October. Starting with “Galaxy Note 20 series (tentative name)” in August, it plans to launch “Galaxy Fold 2” and “Galaxy S20 Fan Edition” in September and October respectively.
The Galaxy Note 20 series will be available in two different models that have different screen sizes and features. The Galaxy Fold 2 will have a bigger display than its predecessor and is applied with foldable glass. Galaxy S20 Fan Edition is an economic version of the Galaxy S20 that was launched in the first half. Samsung Electronics is also preparing to mass-produce a 5G model of the Galaxy Z Flip that was launched in the first half. Companies that work with Samsung Electronics are picking up speed in preparing for development and mass-production according to release dates of the strategic smartphones.
It is atypical for Samsung Electronics to launch several flagship products within a short span. In the past, it launched the Galaxy S series and the Galaxy Note series in first half and second half respectively as its flagship smartphones. However, it has shown a different trend this year by establishing its foldable smartphones as its new flagship models and adding an economic model for the Galaxy S20.
This atypical act by Samsung Electronics comes from Samsung Electronics’ sense of crisis towards its smartphone business that has suffered greatly due to COVID-19.. Samsung Electronics’ smartphone business has been struggling in this first half. It is estimated that the Galaxy S20 will record the lowest sales out of the Galaxy S series. Other lower-end models such as the Galaxy A series will not be able to avoid low sales as well.
As a result, the amount of parts and components that Samsung Electronics order for its smartphones have been decreasing sharply since April. It had to cut the amount by 50% at one point. Poor performance by Samsung Electronics, which is the world’s biggest smartphone maker, has impacted the back-end industry entirely which then led to many companies that supply their parts and components to Samsung Electronics going through restructuring and reorganization.
Vice-Chairman Lee Jae-yong of Samsung Elecronics met the management team in charge of the smartphone business on June 15th and ordered an emergency inspection of management strategies. Vice-Chairman Lee met with Roh Tae-moon who is the chief of Samsung’s mobile division, Choi Yoon-ho who is the chief financial officer, and Choi Kyung-sik who is the head of the mobile division’s strategy marketing department and discussed about the first-half performance, plans to increase sales in the second half, and strategies on how to manage next year’s flagship smartphone lineup.
It is unclear whether Samsung Electronics will be able to seize opportunities to bounce back in the second half as it is difficult to guarantee a recovery in consumption due to the current COVID-19 pandemic and a possibility of a second wave.
However, there are also positive signs. Worldwide smartphone demands are passing through low point. According to a market research company Strategy Analytics (SA), the number of worldwide smartphone shipments in May was 81.6 million units which is 18.3% higher than that of April (69 million) when it was at its lowest. Samsung Electronics is also gradually increasing the amount of parts and components it orders for its smartphones.
Samsung Electronics will look to create a synergy in the second half by launching a wearable device along side of strategic smartphones. It is planning to release a wireless earphone that has a shape of a bean along with the Galaxy Note 20 series and it is also preparing to release a new Galaxy Watch.
“Samsung Electronics is devoting all of its energy into helping its smartphone business bounce back.” said a representative for the industry. “Because it is also preparing to mass-produce lower-end models such as M51 and M31, there are huge expectations within relevant industries that include materials and components.
Staff Reporter Yun, Geonil | email@example.com & Staff Reporter Park, Jungeun | firstname.lastname@example.org