The premium android handset segment is almost dead.
The iPhone represented 75% of all premium smartphones in 2022, a 6% increase even with the iPhone 14 pro shortage caused by the China lockdown. Quite impressive.
As you might recall that wasn’t a very popular opinion to have . The Samsung users on the forum couldn’t take the possibility that premium android was dying.
You might be right, according to channel checks the s23 series is a flop this year as well. 2023 is shaping up to be a terrible year for Samsung and premium android handsets in general.
Lol, definitely not and would not be a very popular opinion in most internet corners. IME there’s a visceral dislike for Apple among a small-ish but VERY active and vocal crowd on the internet. If nothing else they’re entertaining — especially when someone like you gives them the harsh truth of Samsung’s premium handset business.
whether this year will continue to be harsh to Samsung/Android handsets? Who knows for certain but the trend so far reinforces the negative outlook. My suspicion on the 2 to 3 year trend is it will continue towards IPhone (after that? It has too many unknowns). I categorically state iPhone is the superior device and that is the primary driver of increasing sales. But I recognize opinions can differ based on what features are most important to individual users. But the Apple advantage isn’t only about a superior product, it is also about the advantage of being exclusive, their focus on a few models and a few products. That is in stark contrast to saturating the market with 50 different models in order to catch several million units sold x 50. And that disadvantage for Samsung is one they’ll never be able to change.
Thing is about that tiny vocal crowd, it keeps getting smaller by the minute .
Can’t believe anyone would claim this as an example of competition.
Data and marketshare in the premium segment paints an entirely different picture, which is actually the topic of this thread. .
Excellent read as usual FFR.
(1) Samsung has been bereft of even modest exclusivity in their corporate smartphone strategy. Apple gets about 3 million tuning into their iPhone release event while Samsung gets about 3 hundred thousand. Gee, you mean the company who sells anything to anyone doesn’t hardly get anyone’s interested piqued?
(2) again to Samsung corporate issues exacerbating their issues:, the company must be highly fractured. The right and left hand are too unaware of each other’s actions. Samsung is the world’s second biggest semiconductor company including foundries. Samsung Mobile is the biggest internal revenue generator, their second biggest is semiconductor. End result, Samsung dialed back even further the use of their own SOC chips in their own mobile electronics. How’s it possible their own semi could be so inadequate to supply their own mobile division? Imagine the headline if Apple had to go to another’s chip design to make iPhones competitive? .
(3) i hope you’re right about the vocal No Apple crowd getting smaller. That is likely to have the effect of forcing tech channels and blogs a bit away from the inane clickbait served up special for this crowd.
I get the impression that some Apple enthusiasts actually want the premium Android market to crash and burn, especially Samsung. That would be bad for everyone. Without competition Apple will become complacent and you will take whatever they give you. Profit will most certainly take precedence over innovation and we’ll be stuck with boring reiterations of the iPhone year after year. The best thing for the overall smartphone market is more competition, not less. A third player would make it even better, you hear that Microsoft???
No! And it won’t. There are those who will not buy Apple, period. That will keep a not unsubstantial number buying S23s (and a handful of pixels). It has a stylus built in, come on!, that sells itself.
Yes, Apple is better with competitors. This tends to increase design risk taking that may not happen without competition.
I don’t control the premium sales market. What’ll happen will happen. But What has happened is a superior product and company has won a huge and growing share. Maybe efforts by Android fans should be directed at Samsung to do better, no?
I don’t agree that Apple is the superior company. Apple has and always has had a superior messaging campaign. They have successfully made it cooler to own their products than to own their competitors. That’s pretty much it. Sure, iPhones are great devices. I’ve owned every one since the 3Gs. But, it’s the image of owning one that drives sales. A big part of that is iMessage. People, especially young people, don’t want to be the green bubble person in their friend group.
you have your own opinion and i respect that. But the metrics and even your statement point to your opinion being wrong. For example, you say Apple “has made it cooler to own their products”. Even assuming the reason for success is Apple’s products are simply cool to own, that in itself equals Apple being a superior company. Apple the company successfully created that ‘cool to own’,. Samsung certainly tries but doesn’t succeed by your own conclusion.
-Apple has stubbornly and meticulously stayed to a core of products and models, and stayed in specific market segments. Android companies mostly flood their lineup with models and go into every market segment. That’s called exclusivity and it matters.
-Apple has stubbornly and meticulously, and at very great cost, designed their own SOC. An SOC designed precisely for the OS. Android competitors go off the shelf on both, designing the OS to fit the SOC. Apple goes custom precision elsewhere too (superior product).
-iPhones are 60% longer OS support, software support gets it closer to 100%.. (superior product and company).
-Apple’s financials including their incredible services business, their incredible success with the Watch market and Wireless stereo ear buds, introducing successful ARM to desktop, and booking earnings that are historically singular (superior product and company)
Further consolidation for android oems in 2023, niche segments are always the first to go.
Édit: ouch, s23 beaten by a 2022 flagship
Gaming phones were always a niche but Legion was considered the leader in that niche space. Only conclusion one can take from it: there’s too little money in gaming phones.
As far as Apple “winning” Q1 2023? That is EPIC! S23s started orders on Feb 1, shipping by mid month. Prime Q1 scheduling. This is their new flagship release! On top of it, Samsung “won” the last 3 years Q1. But consider these “wins” were by selling A LOT of low cost, too little money in them, budget phones. Now think about that: Apple wins Q1 selling nearly entirely premium phones, Samsung loses Q1 while selling high volume low budget phones. Epic! This is uncomfortably close to humiliation for Samsung.
Gaming phones prices are between $900~$1300 which make it fall into the premium market segment, the segment the iPhone is currently dominating in with 75% market share.
You are referring to global humiliation. Samsung is also facing local humiliation in its home market. Apple and the iPhone are taking over Korea as well .
Apparently the iPhone and apple have already conquered the 39 and under smartphone demographic in Korea. It’s pretty much game over for android and Samsung over there .
Great info as always.
LOL, Local humiliating Cherry on top of the global humiliation sundae. Quickly losing ground in your own backyard? Ouch. There’s really nothing to say other than it goes back to stark corporate strategy differences. Samsung will sell anything at any price to anyone. That strips away consumer intrinsic value to owning it. Apple’s long time corporate strategy is to keep laser focused year after year on this handful of products at this price. This provides consumer intrinsic value. It’s also having the better name and having the superior product — but I’ve beat those points to death before .
Ouch! That’s ugly. Some may think, despite the epic YoY drop, half a billion is still great. No it’s not when you’re a company with 280,000 employees, presumably Semi is approaching 100k of those. That is far from a financially healthy 3 months. It is actually unsustainable at that employee level.The humiliation for Samsung isn’t ending there .
As I mentioned before about 2023; Samsung mobile sales disaster is having a material impact on the semiconductor division.
Operating profit for Samsung semiconductor has cratered by 95% for the first three months of the year. First Samsung mobile loses 75% of profits last quarter and now the semiconductor division loses 95% of their profit. Ouch.