Seems like Samsung is anticipating lackluster demand for the Galaxy Note 20
It is believed that the Samsung Galaxy S20 series has barely managed to perform a little over half as well as its predecessor, and the poor sales cannot be attributed to the pandemic alone. The Galaxy S20 starts at $999 and the S20 Ultra costs $1,400 in its entry-level configuration, and these are jaw-dropping prices. Apparently, the Galaxy Note 20 will be priced similarly and according to a paywalled DigiTimes report, Samsung doesn't have high hopes from the lineup.
According to supply chain insiders, the company is pretty cautious about ordering components for the Galaxy Note 20 series. The smartphone market is expected to take a dip this year because of a global recession fueled by the virus outbreak. And since Samsung is seemingly already blaming the pandemic for poor Galaxy S20 sales, it probably doesn't think the Note 20 will do any better.
It's not just the Galaxy Note 20, as Apple has reportedly cut iPhone 12 component orders too
At the same time, Apple is gearing up to eat into the market share of Samsung. Currently, Samsung and Huawei are the top players in the 5G market, but that will likely change with the introduction of the first-ever 5G iPhones.
That said, Apple is also said to be dealing with problems of its own. We have been hearing conflicting reports about a delay in the release of the iPhone 12 because of the supply-side disruptions caused by COVID-19. Last year, it was reported that Apple has asked its suppliers to be prepared for orders in excess of 100 million. Per a more recent report, the company has asked the foundry TSMC to make 80 million A14 chips for the iPhone 12.
While that's still a very promising figure, it sits at the bottom of 80-85 million units that were seemingly requested during the same time last year. Actual sales could be even lower, with the financial services company Nomura expecting the company to ship 65-70 million iPhone 12s in H2 2020.
So, while it seems like both Samsung and Apple are anticipating demand to take a hit, the former's sales will be diluted further by the incoming 5G-enabled iPhone 12, especially in the US, where the Galaxy S20 series accounted for 94 percent of 5G smartphone sales in Q1 2020.
The Galaxy Note 20 is expected to offer a better display than the iPhone 12. It will also have an in-display fingerprint sensor, something which the iPhone 12 probably wouldn't. On the other, the iPhone 12 will likely have a better camera system with a LiDAR sensor and a revamped design. At the end of the day, the iPhone 12's lower starting price may tip the scale in Apple's favor.
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