Samsung Prepares for Galaxy Z Fold4 Unpack Event in August
[Asia Economy Reporter Cha Min-young] As the monthly global smartphone sales fall below 100 million units, warning signs have been raised regarding the performance outlook of Samsung Electronics and Apple, which together account for 40% of the global smartphone market.
Monthly Shipments Fall Below 100 Million Units for the First Time in 2 Years
According to Counterpoint Research on the 6th, global smartphone sales in May dropped 10% year-on-year to 96.5 million units, falling below 100 million units. This is the first time since May 2020 that sales have fallen below 100 million units.
The sharp decline in consumption compared to the previous year due to the economic downturn had a significant impact. Inventory turnover cycles are also lengthening. According to market research firm Display Supply Chain Consultants (DSCC) and foreign media, Samsung Electronics' inventory turnover days in the second quarter of this year averaged 94 days, marking a record high. Some analysts suggest that the slowdown in the smartphone market is due to structural factors. According to Counterpoint Research's data, the global smartphone market has been gradually declining in sales since peaking in 2016. After the duopoly of Samsung Electronics and Apple solidified, flagship smartphone prices rose to around 2 million KRW, extending replacement cycles. Strategy Analytics (SA) also released an analysis report stating that the average global smartphone replacement cycle lengthened 1.6 times from 25.6 months in 2013 to 43 months in 2020.
Negative Impact on Samsung Electronics and Apple’s Performance
The market is focusing on the performance of Samsung Electronics and Apple in the second half of the year. Counterpoint Research and NH Investment & Securities forecast that this year’s global major smartphone sales will decrease by 10.2% year-on-year to 518.3 million units. Samsung Electronics, the top manufacturer with a 20% market share last year, is expected to sell 111.8 million smartphones this year, a 1.2% decrease from the previous year. Apple is expected to record 90 million units, down 6.2%. Due to the intensifying US-China trade war, the Chinese smartphone trio Xiaomi, Oppo, and Vivo are expected to sell only 6.12 million, 7.66 million, and 4.54 million units respectively.
Samsung Electronics plans to unveil the ‘Galaxy Z Fold 4’ and ‘Galaxy Z Flip 4’ at its Unpacked event in August, while Apple plans to introduce the iPhone 14 series in September. A Samsung Electronics official said, "We are closely monitoring and responding to persistent variables such as the aftermath of the war, supply instability from China, and declining demand, but it is true that the situation is not easy," adding, "We will compete with differentiated experiences such as the new form factor foldable phones and the ‘Galaxy ecosystem.’"
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