During the hypothetical "Samsung" conference, which it recently organized, to launch its new models of phones and smart devices, foremost of which are the "Galaxy Note 20" and "Galaxy Fold 2" for 2020, it became clear that the price challenge occupied the first priority, and overwhelmed or perhaps Absent the glamor of the new improvements and additions introduced by the company to the two models.
The reason is that their prices are still at the level of a thousand dollars or more, while the focus is on cope with the declining purchasing power of dealers in the face of widespread unemployment and low income of buyers, due to the repercussions of the Corona virus.
This is what prompted competitors, especially Apple and Google, to offer devices for less than $ 400, and to stay away from offering devices of $ 1,000 or more, until the post-pandemic period, or at least until purchasing power improves.
Great difficulties
This was reflected in the opinions and reports of a number of analysts and experts, which Emirates Today followed up before and after the conference, most of which focused on the great difficulties that the new models of Samsung face in dealing with the market. It is expected that sales will decrease by 40% compared to what previous models of the same categories achieved, which were launched during the year 2019, before the outbreak of the Corona epidemic, regardless of any improvements or additions in the specifications and technical capabilities of these models, foremost of which is the ability to work with the fifth generation networks.
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In this context, an analyst at the Tech Analysys research company, Bob O'Donnell, said, “The two new phones were launched at a time when everyone is facing difficulty (opening his wallet) and paying for anything due to declining income, widespread unemployment, and market turmoil resulting from the Corona epidemic. The challenge for the two phones is that their prices have not decreased and are still breaking the thousand dollars barrier, at a time when the majority of buyers, including those accustomed to buying the most expensive phones, tend to save their money and wait until the epidemic ends.
"Galaxy S20"
On the other hand, Mark Bachman, chief technology and communications analyst at MScience, a company specializing in mobile phone research, referred to what happened with the Galaxy S20, which was put up for sale at the beginning of the year. A week after it reached the market, orders were issued to stay in Homes in most countries of the world, as part of anti-Corona measures, and most consumers had no idea how much the epidemic had changed in their lives, and the result was that the sales of the Galaxy S20 during the four months following its launch reached about 44% of the sales of the Galaxy S10, Which was introduced in 2019.
Buckman expected that the same would happen with the new Galaxy Note 20 and the new Galaxy Z Fold 2, and their sales would decrease by more than 40% from what the previous models of them had achieved last year before the Corona epidemic.
The analysts of the global company "IDC", which specializes in information technology research, joined the list of those who see prices before the specifications. The analyst of the company Ryan Reith said that 2020 was supposed to be good for the phone industry, and that the new innovations in the past year would become for the fifth generation screens. And foldable screens are cheaper and more available in 2020, which gives consumers a reason to upgrade. Instead, financial struggles and concerns about the Corona pandemic will limit the number of devices companies can manufacture and the number of phones people will actually buy.
Reith pointed out that most of the prominent phones that have been launched since the outbreak of the epidemic have fallen between medium or low prices, and have moved far away from the high-end specifications with high prices. Apple launched the iPhone SE for $ 399, and Google also launched a phone. Pixel 4 is at the same price level.
On the other hand, an analyst at the Creative Strategies Foundation for Creative Strategies, Carolina Milano, said that fans of the Galaxy Note models and foldable phones may be the last hope for "Samsung" at this stage. These represent a segment of buyers, who may not be affected by the situation. The current market, when the Galaxy Note was first introduced, attracted a segment that granted it loyalty, despite the presence of various alternatives that are less expensive, as is the case for foldable and dual-screen phones that target a segment that is not necessarily affected by the repercussions of Corona.
The phone market
“The global smartphone market is expected to decline by 12% this year, and the industry will witness its worst three months ever in the second quarter, and it is likely that it will not grow,” said Ryan Reith, an analyst at IDC, a global information technology research company. Sales until early 2021, and these conditions throw more challenges before the new, high-priced Samsung phones.