Looking back on the history of smartphones, you can discover certain laws. Apple has established the foundation of the current smartphone through the iPhone. Since then, mobile phone makers have been in decline, and Samsung Electronics has succeeded in pursuing the iPhone with the Galaxy. Since then, Apple has led the way and Samsung has followed.
But Samsung wasn't always chasing. For example, Samsung is superior to Apple in the OLED display, and the camera performance.
What best shows that Apple is leading the smartphone industry? That is the price. Their high-price strategies had a big influence on the prices of competitors' products including Samsung Electronics.
Let's look back the results of the high-price strategies that Apple set up since the iPhone 10. At that time, Samsung Electronics, which lowered the price of high-end products due to the pressure on mobile phone costs in South Korea, and Xiaomi, which tried to cut the price to secure competitiveness, subsequently launched a high-end product.
But Apple changed the direction. The fact that smartphone sales have been declining seems to be the main reason of the change. And there is also COVID-19. According to the Strategic Analytics, worldwide smartphone sales are estimated to have decreased by 26.6% compared to the same period last year. There are some articles that says iPhone sales in China fell 61% in February.
The same goes for Samsung. The Galaxy S20, which was released with the high-end camera, was expected to be sold 40 million units in the first year. However, the informal forecast of sales volume is 80% of the previous one. The main problem was the price. The Galaxy S20 series is priced at 1,240,000 KRW.
In this situation, Apple seems to be looking for a new way by launching mid or low priced model. Apple recently announced iPhone SE2. And it has excellent computational power and an excellent camera, but the price starts at 550,000 KRW.
If other smartphone makers fail to deal with this, their market share may drop. In South Korea, Samsung A-series, LG Velvet, etc. will be released, but their overall performances are lower than Apple's SE2.
Therefore, smartphone makers, including Samsung Electronics, need to cut the price of existing products, or show new smartphones with similar prices and excellent performance. Thanks to this, consumers will be able to see the era of mid and low-priced phones starting in 2020.
It is a good time for users who are struggling between a premium phone that has good performance but is too expensive and a low-priced phone. When the new mid-range era opens, users can make better choices. This is why the market always needs competition.
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