Samsung, Apple and to a lesser extent Huawei are struggling to sell their smartphones to 1000 euros. The premium segment is idling and largely contributes to the weakening of the smartphones which for the past few months has been experiencing its worst crisis.
The Galaxy Note 10 has just been formalized. The Note 10+, the most successful model is proposed at a minimum price of 1109 euros. It goes without saying that Samsung is not targeting the mass market, as the company has readily acknowledged in its latest report to investors that "sales of flagship products have slowed due to weak demand in the high-end market" . Apple is the market player most affected by this decline even if income level, its diversification allows it to depend less and less on the iPhone.
Samsung, Apple, Huawei: users shun smartphones at 1000 euros
Analyst Mo Jia from the Canalys research firm is taking stock of the high-end segment. "Between late 2018 and early 2019, we saw the ultra-premium segment decline worldwide for two consecutive quarters, mainly because of the weak performance of the iPhone," he says, quoted by Les Echos. The market fell by 15 and 16% before stabilizing at + 2% in the second quarter this year knowing that a year earlier it was up 92%. The difference is huge.
More than any other giants on the market, Apple is particularly affected by this slowdown in sales and is now number 4. Samsung and Huawei in their case can compensate with their presence in the mid-range segment which is doing rather well. This is what another analyst, Anthony Scarsella from IDC, says. "In the second quarter, one of the market drivers was the availability of improved midrange devices that offer premium design at a significantly lower price than the ultra-premium."
More and more smartphones concerned
Huawei is the only one to withstand the crisis, thanks to its subsidiary Honor and its mid-range offer. If the Huawei P30 Pro sold pretty well this year, the Chinese giant weighs only 3% of the world market in the premium segment. Its overall weight is still quite low, knowing that Apple still rises to 47% of market share despite the decline in sales. With his Galaxy Note 10+, Samsung offers again a smartphone to more than 1000 euros.
The iPhone XS and XS Max did poor performance, which explains the current difficulties ofApple on the market. Now remains to find the argument that will relaunch growth. Builders will have to find the right balance between price and innovation. The smartphones foldable screens will soon make their debut, but they will not change much in the current state of the market.
Source: The echoes