Securing Smartphone No.1 Next Year... The More Refined Galaxy Lineup

Galaxy S21 Early January Launch, Foldables Revealed with Time Gap
Differentiated by S Pen Inclusion... Lower Price Targeting Market
Z Flip Unveiled After Q1, Two Foldables Released in Second Half
Shipments Expected to Rise 8% from This Year... Aiming for Over 300 Million Units

[Asia Economy Reporter Han Jinju] Samsung Electronics is making major adjustments to its release schedule next year to secure the top spot in the global smartphone market. By spacing out the launches of flagship and foldable phones, which were usually unveiled simultaneously, Samsung aims to establish its foldable lineup while expanding its 5G mid-range smartphone lineup. The strategy is to maintain the number one position by countering Apple and targeting the gap left by the weakened Huawei.

According to industry sources on the 21st, Samsung Electronics plans to unveil the Galaxy S21 in mid-January next year and release the Galaxy Z Flip successor around the first quarter. The Galaxy Note 21 series, Galaxy Z Fold 3, and a more affordable foldable smartphone are expected to launch consecutively in the second half of the year.

Galaxy S21 with S Pen

Galaxy S21 Ultra (Source: Evan Blass)

The Galaxy S21, the first model in next year’s Galaxy lineup, breaks the usual 'February unveiling and March release' formula by moving the launch to late January. Samsung has made a bold decision to incorporate the 'S Pen,' previously exclusive to the Galaxy Note, into the Galaxy S21. The S Pen input feature will be applied to the Ultra model, allowing only users who want it to purchase it. As smartphone performance has become more standardized, making differentiation through cameras and bezels is difficult, so Samsung aims to expand the Galaxy S series’ user base by broadening the application of the S Pen. Tae-moon Roh, President of Samsung Electronics’ Mobile Communications Business, officially confirmed the S Pen support, stating, "We plan to expand the Galaxy Note experience, which consumers enjoy the most, to more product lines."

Changes are also detected in pricing policies directly linked to sales volume. The Galaxy S21 series is expected to be about 100,000 KRW cheaper than its predecessor. When the Galaxy S20 was priced about 200,000 KRW higher than the previous model, at 1.25 to 1.6 million KRW, sales reached only 60-80% of the usual volume. This contrasts with Apple, which greatly expanded options by releasing the iPhone 12 Mini priced in the 900,000 KRW range. Following Apple, Samsung may also exclude chargers and wired earphones from the package to reduce costs.

According to market research firm Strategy Analytics (SA), Samsung Electronics’ smartphone shipments next year are expected to increase by 8% to 275.1 million units from 254.9 million units this year. By releasing the Galaxy S21 more than a month earlier than usual, first-quarter shipments next year are expected to rise by 3.6 million units to 61.9 million units compared to this year.

More Diverse Foldables

Samsung Electronics is also driving the popularization of foldable phones next year. Starting with the Galaxy Z Flip 3, the Galaxy Z Fold 3 equipped with the S Pen, and a low-cost foldable phone, Samsung is expected to release more than three foldable models next year. Unlike this year’s February Unpacked event where the Z Flip and S20 were unveiled together, next year Samsung plans to stagger the release timings to prevent cannibalization and increase the spotlight on the Z Flip.

According to market research firm Display Supply Chain Consultants (DSCC), Samsung’s global foldable phone market share this year is 88%. Among these, the Z Flip accounts for 43% of total shipments. Its popularity is due to its price in the mid-1 million KRW range and portability. If a mid-1 million KRW priced Z Fold series, which lowers the price barrier of the 2 million KRW Z Fold series, is added, Samsung’s foldable market share could increase significantly. Enhancing the durability of foldable displays to support S Pen input would maximize the advantage of a large screen and naturally attract Galaxy Note series fans to the Fold series.

At Samsung’s earnings announcement, Executive Director Lee Jong-min said, "Although foldable phones do not yet account for a large portion of total smartphone sales, foldable sales will increase every year," and hinted at plans to release low-cost foldables by stating, "We will expand the operating price range based on flexible display technology accumulated over several years."

Alongside this, Samsung plans to expand its 5G mid-range smartphone lineup to block the market share expansion of Chinese manufacturers and simultaneously target the gap left by Huawei. The shipment volume of 5G smartphones next year is expected to reach 600 million units, double that of this year. Samsung plans to release 5G versions of the Galaxy A32, A52, and A72 in the first half of this year. The Galaxy A32, priced in the 400,000 KRW range, will also support 5G. Samsung will target markets in India, Latin America, and Southeast Asia by emphasizing multi-camera setups and large-capacity batteries.