The Galaxy S22 series was expected to strengthen Samsung’s position as the leading manufacturer in the smartphone market, but sales of the flagship line fell short of the targets.
Samsung increased the average selling price (ASP) of its devices by just 2%, while Apple posted a 7% increase.
Korean media and analysts have noted that Samsung may lose its premium image overseas, as the super-affordable Galaxy A12 became the best-selling model, and sales of sophisticated devices also fell short of expectations in the US. The drop in sales is forecast to continue over the holiday period.
Research shows that Samsung will not reach the sales goal of 30 million units even before the announcement of the new Galaxy S23 line (which will probably take place on February 1, 2023). Even despite the growth in sales of the Galaxy Z Flip and Galaxy Z Fold, the decline in interest in the classic flagship negatively affects the overall results of the Korean company.
It is noted that the company’s turnover fell by 4%, and the share of smartphone sales decreased – by only 0.2%.
The Galaxy Z Flip4 also lags behind its predecessor, the Galaxy Z Flip3, in terms of sales. The share of shipments of Samsung’s new complex device did not exceed 10% in Canada, the United States and Asian neighbors Japan and China.
In August 2022, Samsung again reviewed the production strategy for 2022. The initial production goal was 334 million Samsung smartphones per year. The company was going to produce 284 million at its own facilities, giving the production of the remaining 50 million to its partners. Of them, it was planned to ship 300 million units. However, the company revised that number down to 260 million and cut its production plan for October and November to 34 million units, well below normal for the period, insiders said.
Samsung once again reduces smartphone production and adjusts the plan for 2022 – from 300 million to 260 million units
Source: gsmarena
