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Samsung makes changes to deal with declining phone sales
Over the years, Samsung has become one of the leading smartphone brands ruling the world. But recently the company has faced some decline in the sales of its phones. To combat these declining phone sales, Samsung has made some upmarket changes.
Soon after the Korean company showed investors a downbeat review of its global smartphone market this year, it gave a cheerful presentation to the media to launch its latest flagship smartphone series – Samsung Galaxy S23.
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According to analysts, the reports of dilution and anti-innovation did not describe hype or false optimism about the new hardware but it shows that Samsung is trying to maintain market share by doubling down on the premium end of the market.
Daniel Araujo, Samsung’s vice president in Seoul, said on the fourth-quarter earnings call where the company provided details behind its lowest quarterly profit in eight years (Via Financial Times) – “Amid prolonging geopolitical issues, continued inflation and the continued economic slowdown, we expect the smartphone market to contract in 2023, with the mass market impacted the most.”
In the meantime, TM Roh, the head of Samsung’s mobile business at the Galaxy launch event in San Francisco said – “We intend to focus on the premium segment in developed markets as well as some of the countries where we are seeing solid growth.” He added that he had seen a “noticeable shift” to luxury models in developing markets.
Samsung’s renewed focus on the Galaxy S23 smartphone, featuring advanced camera improvements and longer battery life, suggets that it struggles to compete with Chinese rivals in the low-to-mid-end smartphone market, while premium-focused Apple has outperformed the market with record service revenue in its last quarter from its software ecosystem.
Samsung aims to stay on top and achieve higher average selling prices with the premium Galaxy S23 phones and foldables. The company will also drop some mid-range models to better deal with an increasingly polarized market.
In addition, Samsung lifted the cover last week on its renewed interest in mixed-reality offerings for smartphone users, in partnership with Google and Qualcomm.
Bryan Ma, an analyst at IDC said, “Samsung is focusing on the high end not only because of the better margins but also because it is more resilient than the rest of the market.” He noted that global smartphone shipments fell 11% overall last year to 1.2bn units, the lowest since 2013, yet smartphones costing more than $600 only slipped about 1%.
The IDC report claims that Samsung was able to increase its market share from 20% last year to 21.6% in 2021 despite economic constraints, with sales from its Chinese rivals suffering from the COVID-19 lockdown.
With the new changes made for declining smartphone sales, Samsung hopes to regain lost ground in China where its market share has fallen to about 1%, by launching a specially designed foldable model for Chinese consumers this year. However, analysts are unsure about the chances of a significant recovery.
New York became the first US state to bring retail consumer rebates for appliances under the Inflation Reduction Act. Applauding the move, Samsung launched a huge energy-saving opportunity for the residents of New York.
Samsung started offering up-front discounts to consumers statewide through New York’s IRA HEAR program. Consumers can now access IRA’s Home Electrification and Appliance Rebate (HEAR) program.
IRA HEAR rebate program advantages
- Save up to $840 on Samsung’s innovative ENERGY STAR products, including laundry appliances like heat pump dryers and all-in-one combo washers + heat pump dryers.
Visit Samsung’s home appliance page to learn more about the options available.
Samsung said this is just the beginning of its rebates journey in New York. The company looks forward to working with partners to expand these retail rebates to more products and in more states across the United States.
Pay attention, the IRA provides rebates and tax credits to households across America. New York is leading the way in providing direct retail point-of-sale appliance rebates, supporting an affordable clean energy transition.
Inflation Reduction Act
Signed in August 2022, the Inflation Reduction Act is the single largest investment in climate and energy in American history.
It provides home appliance rebates for discounts on electric energy-efficient appliances like Induction cooktops, ranges, and heat pump laundry appliances.
Samsung Galaxy Watch Ultra has undergone one of the most extreme military tests. The company has recently published a Watch Ultra test video, featuring Phillip Chu Joy.
Phillip participated in the Peruvian Navy’s Special Operations Course to showcase the watch’s capabilities. It is renowned as one of the world’s most challenging military training programs.
“The Galaxy Watch Ultra pushes technology to its limits, handling extreme conditions with ease,” Chu Joy remarked. “It’s undoubtedly designed for those seeking exceptional performance.”
The Samsung Galaxy Watch Ultra proves its durability and functionality in water, mud, and sand — excelling even under the grueling conditions of Peru’s most extreme military training.
Galaxy Watch Ultra
The Watch Ultra boasts a Grade 4 titanium frame. It also features a shockproof cushioned design that meets MIL-STD-810H2 military standards and water resistance of up to 10ATM.
The product is capable of operating within a broad temperature range of -20°C to 55°C4 and performing at altitudes of up to 9,000 meters above sea level.
These capabilities make it ideal for tracking advanced physical activities like ocean swimming and cycling in extreme conditions; take the Perivian military training as a recent proven example.
Samsung’s Watch Ultra is the ultimate companion for sports enthusiasts and extreme adventurers. It’s crafted to endure the toughest conditions with its pro-grade features and premium materials.
Samsung’s Mauricio Revollar stated:
“We wanted the public to experience the Galaxy Watch Ultra like never before in the Peruvian market by creating the most extreme product review ever undertaken here.”
“This was made possible thanks to the collaboration of the Peruvian Navy, which allowed us to highlight and celebrate the commitment of the students in one of the world’s most demanding military training programs.”
Watch the video below:
Apple collaborated with OpenAI to power Apple Intelligence features. The ChatGPT maker continues to create obstacles for Google. In a recent move, OpenAI discussed a potential AI partnership with Samsung.
TheInformation (via Reuters) reported that OpenAI has recently discussed powering AI features on Samsung-made devices. It seems the ChatGPT-maker wishes an AI partnership with Samsung to expand its reach in multiple folds.
The company is considering developing a web browser to rival Google’s Chrome. OpenAI recently introduced its search engine called SearchGPT. It is available to limited users alongside internal testers and strategic partners.
Samsung x OpenAI
Samsung and Google’s close partnership doesn’t need any elaboration. The friendship isn’t limited to services, as both firms work across an ecosystem. However, it doesn’t stop Samsung from partnering with OpenAI in favor of better service.
As the AI phone market is growing rapidly, OpenAI may innovate further. Google doesn’t lag, but there’s still room for a potential alliance. Apple Intelligence-like features might be deployed on Galaxy phones after Samsung’s partnership.
OpenAI knows Samsung holds the command of the worldwide smartphone market. Expansion of its services will be quite broader than Apple if its partnership with Samsung pens down. For now, take this information as a grain of salt!
Apple x OpenAI
Apple leads the worldwide premium smartphone market. Google and Samsung introduced their AI phones in October 2023 and January 2024, respectively. It forced Apple to immediately enter the segment to normalize the innovation gap.
Google’s availing Gemini Nano AI model, but Apple joined hands with OpenAI. To create a difference, OpenAI powering some of the coolest AI features on recent iPhones. The move is to attract other vendors to adopt source AI from OpenAI.
Well, Apple still reportedly considering bringing Gemini AI on iPhones. The company believes that iPhone users should have different AI providers available. Hence, a multi-collaborative approach is also in the pipeline, at least from Apple’s end.