Hot takes! Samsung stories get all that tasty SEO traffic! OUTRAGE HEADLINE!
Sales figures are in, and the Galaxy S21 is selling poorly. Expectations were high on this line of phones, but even with price drops, Samsung’s premium offerings are failing to impress consumers.
Galaxy S21 sales are down about 20% over last year’s S20, and SIGNIFICANTLY lower than the S10 from two years ago. We’re seeing roughly a 45% drop from the S10, which has to be concerning for Samsung. That two-year period is often prime for consumers looking to upgrade.
There are obviously numerous issues facing technology manufacturers right now. We’re still in the middle of a global pandemic. Component shortages are affecting distribution. Consumers are wisely budgeting more conservatively for big purchases like electronics.
However, if the Galaxy S line is supposed to be a premium tier, where purchases are often as emotional as they are practical, Samsung’s 2021 phones aren’t inspiring consumers to part with their cash.
If we peek over to the other side of the smartphone fence, Apple is certainly facing similar global issues, yet has managed to show not only strong growth year over year to date, but has also encouraged more sales at the “Pro” tier of the iPhone line up. For Apple, the “mainstream” options (iPhone 12 and 12 Mini) seem to be the shrinking demographic six months into 2021.
This is where I take a brief moment to soapbox about tech reviews.
There is NEVER a reason to discuss premium tier phones in the context of “average consumers”. That’s lazy reviewing.
Samsung is contributing a LOT of evidence to that idea. Overall, Samsung improved sales of phones over the first six months of 2021. In 2020 they moved 112 million phones. In 2021 they shipped 130 million. Of those 130 million phones though, only about 13 million were Galaxy S21’s. A little better than 10% of the phones Samsung sold were “premium” tier devices.
The only reason to treat these expensive gadgets as possible recommendations for “average” folks, is to pander to a built-in audience of tech enthusiasts. Confirming the bias of Samsung owners is more profitable on YouTube, but we can also see that this demographic is shrinking.
I would wholeheartedly recommend to my fellow tech reviewers, now is a REALLY good time to reconsider your stances on competition in this market, and broaden your horizons. Samsung PR can be brutally punitive, but you’re likely going to make less money towing that line over the next couple years.
But I digress…
I’m always curious to hear what my readers think might be the cause of this drop in consumer interest. Please leave a comment why YOU think Samsung might be slipping as the Android market leader.
I’m not sure I have the data to back up my feelings on this topic, but I’ll still throw out an opinion.
I think Samsung got greedy.
Recently there’s been a push by Samsung to highlight the exciting newness of folding displays. This is a critical market for Samsung as a component manufacturer AND as a phone manufacturer. Samsung led the market for a significant period of time on their investment in OLED phone screens. AMOLED became synonymous with “quality”, though obviously that hasn’t necessarily held true these last couple years.
Regardless, that was a major win for the company. The next potential profit sector for Samsung displays would be bending OLEDs. I think they pushed too aggressively too soon, trying to lock the same kind of market exclusivity. This product tier is hilariously niche.
I know niche. I like the Surface Duo and Sony Xperia 1.
Samsung is cannibalizing the mindshare of Galaxy S, to highlight the next tier of hopefully high margin gadgets. Galaxy S is increasingly feeling like an afterthought, and I think consumers are picking up on that vibe.
From the Galaxy S9 to the S21, Galaxy S series devices really haven’t gotten “better”. Improvements have been iterative. Features have been removed. Accessories were pulled from the box. It’s a strange flavor of double-think to spend a lot of money on a phone, but still balancing “bargain” manufacturing decisions.
Even selling at a lower price, the S21 doesn’t feel like a bargain, when it’s demonstrably less phone than the S20 it replaced.
I think the overall psychology of this is critical. How can a Samsung fan feel excited about an expensive phone, when the strategy SEEMS to be “make the phones more like Apple or OnePlus”?
The smaller fan base of Galaxy Note fans are looking at the S21 Ultra critically. The S21 Ultra seems to exist as a way to get consumers to pay more for a stylus support, and force those consumers to buy the Note accessories separately. In what reality would that NOT feel like gouging? Why have we not seen stylus support on a Galaxy A tier phone?
When folding phones like the Z Flip arrive at a substantial premium, and are called “statement phones” by Samsung, Galaxy S fans are likely left feeling a little cold.
“I could pay more for a less powerful phone, that’s more fragile?”
That ‘statement’ feels cynical.
Eventually, the prices fall on those luxury tier gadgets, but often by then, the consumer interest has waned too.
Samsung’s strong arm, Wal Mart style price drops and trade in deals are long-term hurting the brand image. Die hard Samsung fans are punished for jumping on the launch hype train, when phones go on sale WEEKS after pre-orders ship. Samsung can’t maintain the value of their products when they undercut the used market so aggressively.
I also have a pretty good handle on perceived value. I was an LG fan.
Samsung is at a critical transition point.
The Galaxy A series is an incredible bang for buck roster of phones, not that you would know about it given the coverage of mainstream Western reviewers. Samsung isn’t bringing the same attention to innovation to the Galaxy S tier of devices, instead trying to find ways to cut costs and copy Apple profits.
We’ll need to see if Gen 3 of folding phones is the new hot market for Samsung. I hope consumers are excited by innovated new uses for pocket computers, but I’m skeptical that Fold and Flip will make up the difference in waning Galaxy S sales and the absence of the Note.
What do YOU think led Samsung to this downward trend? Drop a comment below!
My wife needed a new phone and I could pull the trigger for the S21 because it had so many comprises at the price. I bought a renewed s10 off Amazon and it’s great. It has everything she could want. 855 is still powerful has three cameras , great screen, expandable storage, dex, and it only cost $250. The phone looks new and performs like a flagship.
SAME! I needed another Galaxy for coverage and I went back to the S10e! Hey there S10 pal!
The big selling point for Samsung back in the day had to be those GIANT BRIGHT BEAUTIFUL AMOLED displays, I remember whenever someone had a Note or S-series device on my morning commute I would be TRANSFIXED by how gorgeous the content looked on those screens compared to my paltry “retina” iphone. But Samsung now sells those displays to EVERYONE and frankly, I’d rather not deal with OneUI for the privilege.
I’ve had Samsung Galaxy flagships since 2016. Currently using an S10 and unless something changes, it will be my last. We’ve got progressively less in each subsequent release and that’s stopped me upgrading. Right now I would probably go with an A Series phone if God forbid something happened to my S10
I went back to the S10e! Hey there S10 pal!
Would love to see a video on using the S10e in 2021. Need to upgrade mother’s slowing S8. Doesn’t want a big phone and wants a headphone jack and start with Samsung if she can. Can’t get that with new phones so would probably buy S10e new if I can find one.
A52 5G
As he said on All About Anroid at Twit, the A series has some very fine phones. That one has a headphone jack, expandable storage, 5G, and a brand-new battery. I am looking at that one that for my husband and daughter, who both have S9s. Samsung dot com offers very substantial trade-ins too!
Presumably they’ll get software updates for the same length of time as the new flagship phones? And I’m also concerned about all of those ads built-in to the software — so gross. But it’s my best candidate so far.
It’s tough to say. I think a lot of people are holding onto their phones longer now since the performance/improvements have been more incremental these days. An S10 (even the S9 or any SD845 phone) is still a great phone and does what most people want/need. If you have the S20, you really saw no need to upgrade.
As a techie, it sucks seeing features removed, but the “average consumer” is not using those features anyways (except for maybe the headphone jack). Even as a techie, I hardly ever used the SD slot on my old G7.
I just upgraded to the S21 Ultra from my G7 because my G7 battery was not lasting as long and I was itching for something new anyways (and Google Fi had a decent deal on it). I miss the headphone jack, sure, but the phone is amazing and does everything I ask of it and stylus support is really amazing and I have been using the 10x zoom a lot for video recordings. And like you said, Dex is just next level beast above everything else.
I had been looking at other phones like the OP9 Pro, Sony 1 iii, even the V60, but S21U begrudgingly took my money and I am glad for it.
Except we KNOW that’s not true. The AVERAGE consumers never had to give up those more complete phones. Galaxy A series doesnt force people to buy a less complete phone, and we KNOW A series is outselling S Series. There is NEVER any reason to bring up “average consumer” usage when talking about premium tier devices. Consumers ARE voting with their wallets. Techies just don’t want to hear it.
And Xiaomi is number one in Europe. Affordable phones sell a whole lot more
Xiaomi is just eating EVERYBODY’S lunch right now LOL.
I think Samsung has been on a sliding scale of quality for most people. I’m gonna say it, I think the headphone jack decision is really biting them. Speaking for myself, that was a big reason I left them when those rumors starting going around. Samsung was the brand for people who wanted ALL the features and now they’re the brand that drops features every year. When apple or Google does it the fans get annoyed, but people went to Samsung expecting to get no compromises hardware while apple and Google are more focused on software. That’s a big hit to your fan base who are going to go find other options. In my case I found out I could get better software support, my biggest issue on Samsung, and keep the headphone jack by going with a pixel 4a 5G and I saved a bunch of money. The high end market in general is looking worse every year for a lot of people as prices hike up but features are removed. If I was going to buy a Samsung I’d be looking at the A52, not the S21
I don’t think it’s a matter of Samsung iterating in small steps compared to previous models. It’s the increased pressure from Chinese brands for cost effective and innovative products. Also Apple’s offering so many options at each price level has hurt them.
I agree that removing headline features such as headphone jack, expandable storage etc also hurt their loyal fan base
As a Longtime Samsung guy from the slider phones to the S20plus. I currently have the Note10+ and S20+ and I cannot in full faith buy another new Samsung device. Tje Note 10plus still performs daily better than the S20+. Better battery life on factory settings, the audio listening is better on the Note and the stylus is great for me when I’m in meetings. No Note pads just my phone and its handy stylus. The camera is better inmy opinion as well. It opens quicker and it shots still look flagship worthy. 0The past 4 years we have seen them drop features, increase prices and offer less than ideal updates in a timely manner. The camera quality suffered with a zoom that was basically a gimmick and it felt like they lied to us about the camera. No headphone jack no expandable storage and no Note series due to chip shortage?…. Yet they want us to buy a fragile screen phone that hasn’t a dust resistant as high as it S series or Notes series and make it great….but won’t offer anything substantially new until they release the chipset with AMD?!…Nope Sammy I’m done with your tactics and either Xiaomi, OPPO or Sony and maybe Google will be my next new phone…sorry Apple you’re worst than Sammy.
Removing storage…no micro SD card … removing earned port… etc … they are just taking what could be a tool of I creasing value and reducing its value as a tool … I g honk they misunderstand why upscale consumers are willing to part with big bucks ….for a new cell phone .. they are treating it like fashion … when for a plurality of us it is because we want more capable tools …
That is the s21+ dummy
Happy to leave your comment up for how wrong you are AND that you’re being an insulting jerk about it. Congrats on being THAT guy.