High-end smartphones account for just 29% of Samsung’s sales in Q1 2017

High-end smartphones account for just 29% of Samsung’s sales in Q1 2017

It’s been revealed that high-end smartphones accounted for 29 percent of Samsung’s combined handset sales in the first quarter of 2017; marking the first time the figure has dropped below 30 percent. Samsung posted a record $7.8 billion operating profit in Q4 2016, but it looks like the company isn’t making as much money from high-end devices as it previously used to.

High-end smartphones Samsung’s sales in Q1 2017

High-end smartphones Samsung’s sales in Q1 2017

The Investor shared findings from South Korean investment fund Hana Financial Investment, which stated that the revenue from high-end smartphones accounted for just 29% of Samsung’s global sales in Q1 2017. 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.

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. Samsung noted “improved profitability” in the entry-level and mid-range segment in Q4 2016, and the company is looking to boost the competitiveness of its budget offerings by introducing features that were previously limited to the high-end segment. Case in point: the Galaxy A 2017 series now comes with water resistance and 16MP cameras.

During the same time period, the iPhone’s average selling price actually went up 7 percent to $645. It almost seems like Apple and Android OEMs operate on two entirely different worlds, but it wouldn’t surprise me if one way or another Apple’s global mean went down this year as its key markets approach their carrying capacity.

Once again, this decrease could also be attributed to the prematurely-retired Samsung Galaxy Note 7 whose cancellation may have offset sales figures and led to fewer premium Samsung devices being sold in the latter part of 2016 and the beginning of 2017. Samsung will be hoping to increase revenue from high-end devices in the coming quarters, which will undoubtedly be aided by the release of the Galaxy S8 and S8 Plus.



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