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Samsung Galaxy S20 5G series suffering because of high prices, COVID-19

Published: Apr 07, 2020, 1:21 PM

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Samsung's Galaxy S20 5G series is suffering because of high prices, COVID-19

The COVID-19 pandemic has crushed demand for all smartphones regardless of the brand, but the new Samsung Galaxy S20 series is performing particularly poorly according to an extensive survey carried out by Wave7 Research (via PCMag).

Customers in the US aren't pleased about the price hikes

The vast majority of carrier store representatives contacted by Wave7 Research over the past month say the Galaxy S20 series was facing sales troubles even before the COVID-19 pandemic hit the United States hard.

Samsung drastically increased prices across the entire lineup this year and completely skipped the budget flagship segment. It instead opted to discount the previous-gen Galaxy S10 series and it seems as though consumers in the United States aren’t at all happy with the changes.

For reference, the 2019 Galaxy S10 models retailed at the very respectable $749, $899, and $999 price points at launch. The newer Samsung Galaxy S20 lineup, however, starts at a whopping $999 and rises to $1,199 and $1,499.

Samsung Galaxy S20 5G series suffering because of high prices, COVID-19

The $999 Samsung Galaxy S10+ was the most popular flagship last year and the gathered information indicates buyers are sticking to that same price point in 2020. The survey concludes that the $999 Galaxy S20 is the most popular Samsung device in the United States right now.

It is followed by the $949 Galaxy Note 10 that launched last summer rather than the premium Galaxy S20+ or Galaxy S20 Ultra. That is largely down to the fact “some customers appear to be resistant to high Galaxy S20+ and Galaxy S20 Ultra pricing."

The COVID-19 pandemic has also taken a hit

As stated in the opening paragraph, the ongoing COVID-19 pandemic hasn’t helped the Galaxy S20 situation at all. After the pandemic hit, Wave7 says it surveyed 48 dealers about what happened to their daily new-line activations.

In total, 37 of them said new-line activations were down. More worrying, though, is the fact that 17 of these reported a drop in activations of at least 50% since the pandemic started showing an impact.

Seven of the representatives surveyed claimed activations were actually up, although Wave7 Research believes this is because nearby stores closed and customers flocked to the few ones still open.

If the situation continues as is, the Samsung Galaxy S20 series may well become the worst-selling Galaxy S flagship lineup in years. That would be a huge blow to Samsung, who has been struggling with large profit drops in recent quarters.

It isn't all bad news for the Galaxy S20 series

There are some positive bits of information, though. Around 20% of surveyed store reps said sales of the Galaxy S20 series were up when compared to the Galaxy S10 series.

One dealer cited in the report said the Galaxy S20 camera advancements, including the 108-megapixel main camera and Space Zoom featured on the S20 Ultra, were driving interest among customers this year.

On an international level, it appears the Galaxy S20 Ultra may be surpassing sales expectations. Sources close to the supplier of the 40-megapixel selfie and 12-megapixel ultra-wide-angle cameras used on the smartphone say production was recently increased.

That likely means demand for the Galaxy S20 Ultra is exceeding expectations. Despite the ridiculously high price tag, reports claim the flagship has so far accounted for over half of the Galaxy S20 series shipments across the globe.