Samsung's high-end smartphones account for just 29% of its sales, marking an all-time low

Samsung's high-end smartphones account for just 29% of its sales, marking an all-time low
Just two days before the official release of the Samsung Galaxy S8, a new report claims that Samsung's high-end devices aren't doing as well as they did before. According to the Korean media The Investor, Samsung's top-of-the-line handsets account for just 29% of the company's mobile sales in the first quarter of 2017.

The data is compiled by Hana Financial Investment and it marks the first time sales of the Galaxy S and Note series have fallen under 30% of the company's total. The sales of high-end devices once reached 75%, when the Galaxy S4 was released in 2013, and it's been steadily declining ever since, falling under 40% in 2015.

While this data might seem like bad news for Samsung, it actually makes perfect sense. The Galaxy Note 7 recall eliminated one of the company's flagship devices, which in turn probably resulted in less top-of-the-line devices sold. And with the Galaxy S8 coming in the matter of days, consumers are more likely to wait for the new phone. Even if end-users still want to buy a Galaxy S7 or Galaxy S7 edge, their prices will probably drop after the new phone sees the light of day.

When it comes to average sales prices for Samsung's entire phone catalog, its devices were sold at $232 globally in 2016. This is 19.7% lower than 2015's $289 mark, according to Strategy Analytics. For comparison, Apple's average sales price for 2016 was $645, which is a 7% increase from 2015. The huge difference in average prices is not surprising either, though, considering that Apple doesn't manufacture mid-range or entry-level smartphones.

source: TheInvestor via SamMobile

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71 Comments

1. Plasticsh1t

Posts: 3094; Member since: Sep 01, 2014

Figures.

45. You_Dont_Say

Posts: 431; Member since: Jan 26, 2015

Samsung flagships are just awful. Here is why: - They Lag - They're overpriced - Weak real-world performance despite impressive benchmarks - High chance of exploding

2. kumar1234 unregistered

People are realizing that Samsung phones are bad, really bad. Their phone becomes extremely laggy after a couple of months ( more than any other manufacturers ), their battery life while showing excellent result in benchmark actually is worse in real life and become very bad after 6-8 months. Their amoled display shows pink hues and weird straight lines after couple of months. Their premium phone loses their value within a couple of months. So people are realizing that buying Premium samsung is not a great decision. There are better android option out there like the cheaper One plus and the true premium android phone like Pixel.

4. Mxyzptlk unregistered

I agree.

6. AlikMalix unregistered

I disagree... What people do probably realize is that Androids versatility is highly overrated, and at top end the iPhone is less versatile when it comes to customizing your icons and fonts, but it is more of what people need and less of what makes android os a cumbersome tool to use, and seek support for. Or they realize you're not gonna get that much advantage with high-end android device and can get by with a cheaper model... And as previous reports also confirm that if you're going to spend flagship money - most will choose an iPhone over any other high-end device. No Hating, just observing... I would not recommend an iPhone to someone who needs a stylus to use the device... I would not recommend an iPhone to someone who wants to change icons and font design. I would also not recommend an iPhone to someone who simply prefers a cheap medium to large sized device... because a cheap android phone is basically a high-end android phone filled up with photos and apps 6 months down the line when it overall slows down anyway... Once again, some of you know how to maintain your android device, i'm talking about regular consumers who experience a brand new galaxy device noticeably slowing down after 6 to 8 month of use... From online and real life testimonials and observation...

7. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Finally someone here who makes sense, unlike other people in this article [COUGH]kumarmxy[COUGH] who blindly hate just because it is not their sacred brand.

14. Mxyzptlk unregistered

You're such a hypocrite.

20. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Says the guy who has been called hypocrite by many users more than any other users in this site.

33. Mxyzptlk unregistered

Aka, I have no comeback other than a No You response.

39. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

That would be your lame response. As usual, you're too predictable.

10. HomerS

Posts: 419; Member since: Sep 19, 2014

Lol good one and nice try troll. Samsung Amoled displays are the best on the market, are used in the Pixel, Oneplus One and many many other phones aswell. And Samsung uses the newest generation in its premium devices first. The prices of other high-end phones drop faster than those of Samsung prices, check out LG G5, V20, HTC 10, Sony Xperia Z5, ect. Samsung devices getting laggy? Maybe some with Snapdragon chip but not Exynos S7edge Nougat vs Pixel XL Nougathttps://www.youtube.com/watch?v=-w-HYw-y0BI S7edge Nougat vs Pixel XL Android Ohttps://www.youtube.com/watch?v=JGcPnIbV5tg&t=186s

13. Back_from_beyond

Posts: 1307; Member since: Sep 04, 2015

The true reason that any premium/high end Android phones loses value is because they have a lot of competition and throughout the year new phones with better hardware are released continuously, whereas Apple only releases a phone once a year, denies retailers the ability to sell them at a cheaper price unless Apple itself does a temporary sale or so and thus Apple artificially keeps the iPhone prices at their peak. Retailers that don't follow Apple's policies are punished by getting less stock when a new phone is released. The only one that really makes money of iPhone sales is Apple, retailers barely make any profit from it. Some countries have/are investigating Apple's behavior as they are borderline criminal, it's also why Apple eagerly has its own Apple stores in most countries, to eliminate the problem and maximize profit.

18. AlikMalix unregistered

1. Apples competition are the same competition as all android devices have... people choose an iphone or android phone as they lay right next to each other in every carrier and store world wide. 2. Apple uses predictable release dates is Apple's choice, if Samsung wants - they can do that too... who's stopping them? Oh that's right, Apples customers retain value of their devices, Samsung gives little snot about device value after they got your money - you're arguing against yourself on that one! 3. Retailers run sales of iphones including BOGO deals all the time just like android devices - not apple, not Samsung, not LG.. where do you get your info? 4. Retails get punished by Apple? proof? you're making stuff up now. if youre talking about deals that retailers make - well they have to be allowed by contract, but that applies to all their device, apple, Samsung, lg, nokia... etc...NOTHING DIFFERENT 5. Apple builds best device for high-end consumer - it's proven by articles recently... Everyone wants to sell apple devices. If they made no profit for retailers - why the hell would they bend backwards to sell it? Countries investigating apple because it's a cash cow - authorities also investigate Samsung and currently trying to put their ceo in prison for criminal activities (you get your corporations mixed up). Google is another cash cow that's always being investigated... you bias much? 6. Apple has it's own stores because that's what it offers it's customers as part of support. YES it does make them money. but you're not force to buy from APPLE STORES, ALL RETAILERS AND CARRIERS Sell iPhones just like Android devices... If the dang Samsung or LG wants to - they can open and operate their own stores and "maximize profit" but I guess it's not that easy, as well as building their own DAMN OS like Apple did (or is that a crime too, now?) You reek of bias... which one of your accounts got banned again?

46. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

1 - Not the same. Because of the platform. As he stated, because new Android arrive more often throughout the year, premium devices dont hold a high sale value long. Carriers for the most part keep the same price on a device until a newer one arrives from the same OEM. When PA post articles showing prices drop, they are almost always International models and are sold by 3rd parties. These usually are not OEM or carriers/retail pricing drops. 2 - They already do this, just not for ever single model..I think Samsung would so better if they just sold the S, Note and the A series. 3 - Agreed! 4 - Agreed! 5 - I don't 100% agree. When you sell Apple products, you tend to make money from sales of other things. They may not make much money from the phone, but they make money when you also by a screen protector or case. That is why a when you buy a phone, they try to push a case on your or a screen protector, because those things have at least a 100% markup, If you drive 1M people to your store to buy a phone, theer are millions of dollars from side purchases to be made. Retailers and carriers know what iPhone demand produces. It makes them extra cash. Which makes up for the loses on phones. Retailers and carriers don't lose money on phones unless they dont sell them. BOGO deals again simply get more prople in the door. There is nothign wrong with using a device popularity to make money. But the claim Apple makes best device for high end customer is debatable. Let's not go there. It's simply false. Latest info shows it not the best. Apple has the highest failure rate vs any OEM who makes far more phone models vs Apple. 29% failure on a single model. 70M sales and 58% of the phone failed. I hardly call that the best. It took all of Samsung phones combine to have a higher failure rate that Apple has with one model. Those are facts. 6 - Apple has been busted for criminal behavior. Right? Samsung has stores, just not in the US. Not all OEM's do well with their own stores. Sony tried it long before Apple did and they failed. Apple made a success from it mostly because at the time, Apple products were available at far less retailers or carriers vs other brands. Thus a store benefited them. Facts show that most people who go to Apple stores are their for issues, not buying. ShopperTrak data shows that Apple stores get lots of visits, but sales are far lower vs how many people go there. Repairs though are at an all-time high

53. AlikMalix unregistered

There are hundreds of articles just like this: https://www.google.com/amp/amp.timeinc.net/fortune/2015/03/13/apples-holiday-top-10-retailers-iphone/%3Fsource%3Ddam 3rd party Manufactures love selling their stuff at the Apple Store. This just proves that you make up lies to support your narrative.

67. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I dont care about that. That has nothign to do with what I said. Any fool can walk into an Apple store and see which lines has the most people. Here in Chicago, we have 2 Apple stores that are within 5 miles of each other. Especially at the Michigan Ave store, the longest lines in the store are people at the Genius bar waiting for repars or to pickup a devic ethey dropped earlier. Apple may have its spirts of heavy sales , most around holidays. Apple has is biggest sales around the holiday quarters. I never said Apple never had big sales. I said the biggest majority of the people who go are their to get something fix. Do the numbers brush. Out of 100 people, 60 can be there for problem and 40 fan be there to buy. Those 40 over a year everyday, can still be more sales vs a retailer. Take the blinders off brush. You trying to compare all Apple sales to retailers. I never said retailers sell more product vs Apple. I said retailers use the demand on Apple products to make money. All the trolls here have piss poor comprehension skills. I said exactly what I said, there is no reason to take it any other way.

71. AlikMalix unregistered

I guess if you're trying to compare how many people Apple services or assists within heir stores to another brand - you can't - simply because Android OEMs have ZERO stores to assist their costomers. The closest you'll get is the sales guy at at&t or best buy. You failed at your point again. And what I posted is directly related to what you said. You said Apple has low sales vs how many people it assists - is at quite the opposite - people are flocking to Apple stores because their services are top notch and they buy from hat store he most because they trust the service - that kind of scenario comes only from good customer relations - not the opposite, like your trying to insinuate. .

36. bucky

Posts: 3774; Member since: Sep 30, 2009

That my be part of it but they definitely have a reputation of slowing down over the course of 6 months - especially Samsung.

37. trojan_horse

Posts: 5868; Member since: May 06, 2016

^^ You mean the reputation created by haters and cycle-jerking? SMH

44. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Carriers and retailers don't make any profits from smartphone sales. What you pay for the phone, is what they pay for a phone. Many carriers mark up the phone cost to try to make some money, but it is still a low amount. If the raise the cost $30 and sell 1M phones for example, that $30M extra bucks. But they make mor emoney gettign you to jump to theirt network, where they charge outrageous prices for data. See how all the carriers are goign back to unlimited data plans again? Such a scam! Retailers can't sell higher. Apple restricts it, but Apple does not reduce their stock. Retailers have already paid for the phone. They can pretty much sell it for whatever to increase sales of non-moving stock The reason they don't sell it lower is, because they paid full price and lowering the cost would mean lose of revenue.

16. bohdan4ik13 unregistered

People just waiting for Galaxy S8 with new design (or price drop for S7/S7 edge after S8 release)

24. Macready

Posts: 1813; Member since: Dec 08, 2014

OR, you just read the article and find the most logical answer: The small drop in high end percentage of sales compared to last year, is more than explained by the loss of one of the top models. In fact, going by these numbers, The S7 almost completely made up for the loss of the Note 7 in the high end department, which is quite unexpected. Total sales are relatively flat in a shrinking market, profits are up. Not so bad afterall.

32. yalokiy

Posts: 923; Member since: Aug 01, 2016

Maybe a few phones have those issues, but that's an exception not the rule. I have friends running S5 and Note3/4 without any issues for many years. I have friends running S7 as well (for more than 8 month), without the issues you describe, actually, without any issues.

3. Mxyzptlk unregistered

Samsung is losing their Edge. The Note 7 was a bomb and the Galaxy S hasn't been innovative in years.

8. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Legit question: Has your favorite brand innovated anything since its REAL innovator died?

11. ibend

Posts: 6747; Member since: Sep 30, 2014

"REAL innovator" who? the one who said "no one want a phone big screen"? or the one who said "stylus yuck"?

12. AlikMalix unregistered

Same one who actually said Big Phones are difficult to use with one hand - still true! Stylus AS A PRIMIARY input device instead of a finger "YUCK" - STILL TRUE... (also he's referring to old PDA's - you cant do snot on those without using a stylus).... Thank you... good night!

26. trojan_horse

Posts: 5868; Member since: May 06, 2016

Not just old PDAs...He was also referring to Samsung's original Galaxy Note. He said the Galaxy Note was like holding a large potato to your face. "No one wants a big phone", he said. Now Apple is also manufacturing phablets with the biggest bezels, making it even more difficult to use with a single hand than Samsung's Galaxy Note phablets.

27. AlikMalix unregistered

Steve Jobs said "large potato"... interesting... but just in case, he also said "Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations."

48. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Steve Jobs never admitted he was wrong about anything. He was an arrogant drug using narcissistic classless person. I mean only Steve would ever name a product "i"Anything. "I" as in me/myself. Steve was selfish. He was a smart man when it came to marketing and that is why the iPhone is what it is today and the iPod once was. Their other products are lame, terrible sellers and basically useless.

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