Samsung aims to sell over 300 million smartphones in 2021
This year, Samsung‘s mobile phone sales declined below 300 million units for the first time in a decade due to the Covid-19 pandemic. Moving on, the South Korean tech giant is preparing to cross the 300 million mobile and smartphone shipment mark.
According to Korean media, Samsung has set a plan which is quite similar to its plans before the Covid-19 pandemic. As the global economy showing signs of recovery, it can help the tech makers to increase the sales of mobile phones and smartphones as well as foldable.
The South Korean tech giant is rapidly preparing to ship 307 million mobile phones next year including 287 million smartphones and the rest of all feature phones. Samsung’s plan for the coming year is nearly 14% high compared to last year.
It is expected that Samsung will ship a total of 270 million mobile phones in 2020, while the company already shipped 189.4 million mobile phones by the end of the third quarter. Samsung is predicted to ship 310 million to 320 million units taking advantage of the restrictions on Huawei by the US Government.
Furthermore, Samsung Electronics has planned to produce 49.8 million flagship models including the upcoming Galaxy S21 series and foldable phones in 2021. The company will also make nearly 6 million foldable smartphones including the current and newer models that could be launched in the H2, 2021.
Samsung is also reportedly planning to replace foldable smartphones with the Note series. Half of the predicted foldable smartphones could be the Galaxy Z Flip 2 because the company is focussing to put the foldable in its mainstream due to the popularization of foldable smartphones.
As we know, Samsung is also working to launch affordable 5G smartphones such as the Galaxy A22 5G and A32 5G that is reportedly manufacturing through outsourcing, which can help the company to sell 237 million units of its mid-range and affordable Galaxy A series and the M series between the first half and second half of 2021.
To capture the 5G smartphone market of the South East Asian countries including India, Samsung is expected to produce 55 million smartphones through Joint Development Manufacturers (JDM). However, Samsung stated that it can’t reveal any detailed information and strategy about the company’s business plan for mobile phones in 2021
A new report reveals that Samsung will participate as an anchor investor for Arm’s upcoming IPO after taking a conservative approach to the matter due to a perceived overvaluation and regulatory risk.
Samsung opted to make an investment in the chip designer, joining a slew of other industry players including Apple, Nvidia and Intel. Amazon, which was earlier rumored to be participating in the IPO, decided to step out.
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It’s worth mentioning that the strategic investors have agreed to invest between $25 million and $100 million each. The specific amount for each company hasn’t been disclosed yet.
This means the offering price will come in between $47 and $51 per share. It makes Arm’s valuation between $50 billion and $55 billion, down from the initial estimation of $64 billion.
Arm’s IPO on Nasdaq, which is expected in September, is considered to be the biggest IPO deal of the year. The company controls a majority of the world’s application processor market, designing and licensing basic blueprints for chips.
Market research firm TrendForce published the latest report on their analysis. The agency disclosed that after global smartphone production dropped by nearly 20% year-on-year in the first quarter, production continued to decline by about 6.6% in the second quarter, to 270 million units.
In particular, the global smartphone production in the first half of 2023 was 520 million units, a 13.3% decline compared to the same period last year. Both individual quarters and the first half of the year in total set a ten-year low.
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TrendForce analysts pointed out that there are three reasons for the sluggish production performance:
- First, the lifting of epidemic prevention restrictions did not drive demand as expected;
- Secondly, the demographic dividend effect of the emerging Indian market has not effectively exerted its advantages;
- Thirdly, in 2022, brands will be deeply affected by excessive channel inventory. It was originally expected that as inventory is reduced, brands will return to production levels.
However, now affected by economic weakness, people’s consumption willingness is more conservative, resulting in poor production performance in the first half of the year. expected.
Second Quarter Market
In the second quarter, Samsung still topped the list, with Q2 output reaching 53.9 million units, a decrease of 12.4% from the previous quarter. The same period coincided with the replacement of old and new Apple models, with output of 42 million units, a decrease of 21.2% from the previous quarter.
Adding to this, the most obvious change in the smartphone market was Transsion (including TECNO, Infinix, and itel). Transsion surpassed vivo and entered fifth place in the world for the first time. Its output increased by more than 70% month-on-month to 25.1 million units.
Production
In addition to Samsung and Apple, Xiaomi (including Xiaomi, Redmi, and POCO) produced approximately 35 million units in the second quarter, an increase of 32.1% from the previous quarter.
OPPO (realme, and OnePlus included) produced about 33.6 million units in the second quarter, an increase of 25.4% from the previous quarter. Q3 is expected to have a growth rate of about 10-15%, closely following Xiaomi.
Samsung and SK Hynix are strengthening their foray into the GDDR (Graphic Double Data Rate (GDDR) market amid the global gaming surge. The companies appear to be preparing to lead the GDDR market while gaining technological advantage in next-generation products.
Recently, IGI (Industry Growth Insights) published its new report citing that the GDDR market will grow from $3.2 billion in 2018 to $4.8 billion in 2030 with an average annual growth rate of 7.6%. It’s predicted that high-performance GDDR like GDDR6 will record a double-digit growth rate every year.
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Samsung x GDDR
In July, Samsung Electronics developed GDDR7, the industry’s most advanced product, for the first time, and supplied samples to Nvidia for verification for next-generation system installation. SK Hynix also plans to complete GDDR7 development within this year.
On the other hand, Micron plans to introduce GDDR7 in the first half of next year, a step later. In this situation, Nvidia, the world’s largest customer in the GPU market, is known to preferentially review Samsung Electronics’ products instead of Micron’s next-generation products.