"Will the Price-Reduced Galaxy A 5G Become a 'Game Changer'? US Launch Targets LG Phone Gap"

Samsung Galaxy A42 5G

[Asia Economy Reporter Seulgina Cho] Samsung Electronics is gaining attention as a 'game changer' by consecutively launching Galaxy A series 5G models emphasizing cost-effectiveness in the U.S. market. While solidifying its position in the mid-to-low price segment, it is also expected to actively target the gap left by LG Electronics, the third-largest smartphone vendor in the North American market, which is withdrawing from the smartphone business.

According to major U.S. media outlets such as CNN, the Galaxy A42 5G will be released in the U.S. market on the 8th (local time). Following that, on the 9th, the Galaxy A52 5G and Galaxy A32 5G, unveiled last month at the first-ever A series unpacked event, along with the 4G-based Galaxy A12, will be launched. Another 4G model, the Galaxy A02s, is scheduled for release on the 29th.

The price range of the Galaxy A series unveiled this month starts at $109 (A02s). The 5G model A32 is priced under $300 at $279. The A42 5G and A52 5G are set at $399 and $499, respectively. Considering the recent trend emphasizing cost-effectiveness, these lineups have lowered prices while significantly enhancing key specifications such as edge displays, cameras, and processors. The market is particularly noting that the 5G models are launched below $300. Existing 5G smartphones like the Apple iPhone 12 and Samsung Galaxy S21 start at $799.

The importance of Samsung Electronics' mid-to-low price Galaxy A series is growing. According to market research firm IDC, despite the COVID-19 pandemic, the A series accounted for about 70% of Samsung Electronics' smartphone shipments last year. In the U.S., it is about 60%. This is also why Samsung Electronics held its first-ever global unpacked event for the A series last month.

Samsung Electronics' U.S. subsidiary stated ahead of the Galaxy A series 5G model launch, "We will push the mid-range Galaxy A series more aggressively," adding, "The growth rate of the Galaxy A series last year reached 169%." Ramon Yamas, an analyst at IDC, emphasized the high performance relative to price, calling it "a high-end phone disguised as a mass-market device."

Inside and outside the industry, it is expected that Samsung Electronics' recent efforts to strengthen the A series lineup will accelerate further in conjunction with LG Electronics' smartphone business withdrawal. On the 5th, LG Electronics officially announced it would exit the smartphone business by the end of July. LG Electronics holds the third place (9.0%) in the North American market, following Apple (60%) and Samsung Electronics (22.1%). Sixty-four percent of LG Electronics' smartphone sales are in North America.

Moreover, considering that LG Electronics has focused on mid-to-low price lineups rather than flagships in the North American market, there are growing expectations that Samsung Electronics will fill the void. David McQueen, Research Director at ABI Research, said, "There is no doubt that Samsung will fill the mid-range gap left by LG Electronics, the third-largest player in the North American market," adding, "It is questionable whether Apple will target that price range. Moreover, Apple is not Android."

Counterpoint Research also predicted in a recent report on LG Electronics' exit from the mobile phone business, "In North America, Samsung will strengthen the A series to take LG's place, while Motorola, HMD, Alcatel, and others will compete to capture the remaining market share." Motorola ranks fourth (2.8%) in the North American market, following LG Electronics.