(Bloomberg) — Despite signs of a second straight year of contraction in the global market, Samsung Electronics expects demand for premium handsets to drive double-digit sales growth for its popular Galaxy phones in 2023. there is
The world’s largest smartphone maker warned this week that a record smartphone slump could continue into 2023, but while it outperforms the industry by focusing on quality components, Apple Inc. We expect to gradually expand our business in countries such as China, where we are lagging behind.
Global smartphone shipments hit their biggest drop in nearly a decade in 2022, but the high-end gadget market, dominated by Apple and Samsung, has held up well during the recession. On Wednesday, Samsung unveiled the latest iteration of its closest iPhone competitor, his S23. It has a better camera and battery life.
“We expect challenges to continue this year, but we will achieve double-digit growth again,” TM Roh, president of Samsung’s mobile business, said in an interview before the announcement. “Even amidst these challenges, we were able to grow our market share in 2022. We will continue that trend as that is our number one priority.”
Read more: Samsung sees phone market shrinking again after 2022 woes
Hoping to entice consumers, Samsung has kept the S23’s price stable despite rising material costs and a major camera upgrade. But one of his big unknowns is China.
The country remains one of the world’s biggest buyers of memory chips, but the smartphone market shrank last year when the Covid Zero turmoil hit the economy, and a recovery remains uncertain. Samsung’s market share in China has fallen below 1% in recent years. However, he added that the market share of his premium smartphones last year has taken a big step forward.
Samsung is now formulating a new strategy around its premium devices, preparing for an eventual recovery. For example, it has released a foldable model specifically designed for Chinese consumers called the W Series.
“In China, we are building a basic foundation to give Chinese customers what they really want,” he said. “Our strategy is focused on premium smartphones and we are starting to make some progress.
Read more: Apple’s iPhone dominated China last quarter despite turmoil
Smartphones rank among the most important businesses for the South Korean chip and electronics giant. The company relies on his mobile devices to connect its broader ecosystem of services, appliances, and content.
Overall, Samsung has been able to expand a portion of the global smartphone market, Roh said. Samsung’s market share has risen from 20% in 2021 to 21.6% in 2022, according to IDC, although its Chinese rival’s sales fell last year.
The South Korean tech giant is currently working on a mixed reality device called XR. Apple is set to launch its own headset later this year, while Samsung is working with Alphabet Inc.’s Google and Qualcomm Inc. on a yet-to-be-announced project.
In a report this week, Canalys research analyst Le Xuan Chiew said: “Looking into 2023, Apple and Samsung will be better positioned to weather the ongoing uncertainty thanks to their dominance in the high-end market. We are in a good position,” he said. Samsung is also focusing on profitability by beefing up its high-end lineup and adding premium his niche products such as the Fold series, he said.
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