In the last few years, we’ve seen the smartphone industry transition towards developing markets, aiming to saturate countries like India with affordable yet spectacular devices. In most of the world, flagships take a backseat and mid-range devices like the Moto G line duke it out in stores and online retailers.
It’s should be of no surprise to anyone, then, that even companies like Samsung would want to partake in such a competitive and high-stakes market. While Samsung is known for its quality handsets in North America and Europe, countries in Latin America and India endured the South Korean company’s atrocious mid and low-end phones for far too long. Nowadays, Samsung mid-rangers are quite premium, even if relatively expensive (compared to other devices in the segment). Ultimately, though, Samsung had to re-focus its efforts and aim for developing markets, like everyone else, and that means the proportion of premium handsets they sell would likely go down as places like North America become saturated with flagships and competition.
The latest data compiled by Hana Financial Investment tells us this much, confirming that for the first time, Samsung’s high-end devices failed to account for 30 percent of sales for the company. The number sits at 29% and has gone down considerably in the past two years, especially when we consider that flagships accounted for 75 percent of their sales in the second quarter of 2013 with the extremely successful release of the Galaxy S4.
What’s just as interesting is that the average sales price of Samsung devices has also gone down in that time, which is consistent with the idea that the company needed to adapt to developing markets. In 2016, the average sales price was $232 (global mean), down 20 percent from the $289 posted a year earlier according to Strategy Analytics. During the same time period, the iPhone’s average selling price actually went up 7 percent to $645. It almost seems like Apple and Android OEMs operate on two entirely different worlds, but it wouldn’t surprise me if – one way or another – Apple’s global mean went down this year as its key markets approach their carrying capacity.
What do you think about Samsung’s mid-rangers in recent years? Tell us your thoughts below!
Via: The Investor
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