'900,000 Won-Level Gamble' Galaxy S21... "Annual Sales Expected to Increase Compared to Previous Model"

[Asia Economy Reporter Joselgina] The new Samsung Electronics smartphone Galaxy S21 series, set to be unveiled in the early hours of the 15th, is expected to achieve higher sales figures than its predecessor. Samsung Electronics also showed its determination to overcome the sluggish performance of the previous Galaxy S20 series and succeed in the market by setting a groundbreaking launch price in the 900,000 KRW range.

According to market research firm Counterpoint Research on the 14th, the Galaxy S21 is expected to sell approximately 28 million units worldwide by the end of the year following its release on the 29th. This represents a 7-8% increase compared to the estimated annual sales volume of about 26 million units for the Galaxy S20 series, which was unveiled at the early-year Unpacked event last year.

Counterpoint Research noted that Samsung Electronics' decision to bring forward the Unpacked event by more than a month compared to previous years to launch the new smartphone is likely to have a positive effect on sales. Additionally, the absence of Chinese Huawei, which is under strong sanctions from the U.S. government, is expected to have a spillover effect benefiting Samsung Electronics.

Samsung Electronics also made a strategic move by lowering the price of the Galaxy S21 series. Samsung Electronics and the three major mobile carriers set the launch price of the Galaxy S21 at 999,900 KRW, which is 250,000 KRW cheaper than its predecessor. This price is similar to that of the iPhone 12 series, which starts at 950,000 KRW.

This is the first time Samsung Electronics has priced a 5G flagship smartphone below 1 million KRW in the domestic market. This move reflects the company's intention to recover from the poor performance of the Galaxy S20 series, which was hit hard by the COVID-19 pandemic, and to achieve success in sales. It can also be interpreted as a move to counter Apple, which absorbed a large number of iPhone replacement demands by launching the first 5G smartphone, the iPhone 12, in the second half of last year.

Aside from the base model, the Galaxy S21 Plus is priced in the 1,199,000 KRW range, the Galaxy S21 Ultra 256GB at 1,452,000 KRW, and the Galaxy S21 Ultra 512GB at 1,599,400 KRW.

Industry insiders also expect the Galaxy S21 series, launching at the end of this month, to show strong initial sales performance. An industry official said, "With the improvement in the COVID-19 situation and the lowered launch price, sales are expected to be strong." However, factors such as the saturated premium smartphone market and the lengthening replacement cycle are negative elements. In the domestic market, the competition for official subsidies is not as intense as it was during the early days of 5G commercialization, which is also cited as a factor causing consumers to hesitate in making purchases.

Researcher Im Su-jeong from Counterpoint said, "The fact that Samsung Electronics is releasing the Galaxy S21 more than a month earlier than usual and the gap left by Huawei due to U.S. sanctions will positively impact sales volume," but she also noted, "It is difficult to expect a significant increase due to the saturation of the premium phone market and the extension of replacement cycles."

The Galaxy S21, which is set to be unveiled at the Galaxy Unpacked event starting at midnight on the 15th Korean time, features significant improvements in camera functions and, for the first time in the S series, supports the S Pen on the Ultra model. The Unpacked teaser video released by Samsung Electronics on the 12th hinted at enhancements in the Galaxy S21's camera performance. The Ultra model supports a quad-camera setup including a 108-megapixel camera and offers up to 10x optical zoom.

Samsung Electronics recently announced that, in line with environmental protection trends, chargers and earphones will be excluded from the package starting this year. The S Pen, which can be used with the Ultra model, will not be provided by default but will be available for separate purchase.