Flagship Samsung smartphone sales making Apple happy

Highlights

• Samsung’s most shipment is made up of low-end phones
• Galaxy flagships are not doing well in sales
• ASP gap between Samsung and Apple widened due to flagship sales

It looks like Samsung is late in taking the decision of ‘operating strategy’ revision. Since the sales of Samsung smartphones increased, ASP growth (average selling price) is negligible, which makes Apple happy. It’s found that mid-rangers have the biggest share in Samsung’s sales and flagships are not doing well.

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Compared to Apple, Samsung flagship phone sales have not hiked due to software controversy this year, while, Galaxy A series is making new records of success. At the same time, the division of the iPhone 14 lineup is making big profits for Apple as it widened the ASP gap with Samsung.

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During July-September 2022, Apple recorded a 10% increase in sales and a 7% increase in ASP compared to the same period last year. Omdia report suggests that the ASP of Samsung and Apple were $383 and $959, as of the second quarter, respectively.

ASP Growth

• Samsung 2%
• Apple 7%

According to Counterpoint Research, the ASP of Samsung’s smartphones only increased 2% year-on-year in the third quarter of this year. The sales of Galaxy Z Fold/Flip lineup and 5G smartphones got increment (YoY) by 2 times and 27%, respectively.

Due to less sales of the Galaxy S22 flagship lineup, Samsung’s revenue decreased by 4% YoY and the global smartphone market share decreased by 0.2%. On the flip side, not only Apple’s revenue and ASP increased, but worldwide shipments also increased alongside.

“Galaxy has a strong flagship image in Korea, but the perception is different in overseas markets. This is why Samsung needs to put more effort into overseas markets,” said an industry insider.

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