Samsungs high-end smartphones signal the innovation it has in store for the rest of its products, analyst says – CNBC5 min read

https://www.cnbc.com/2021/01/14/samsung-high-end-smartphones-signal-companys-innovation.html

SINGAPORE– Samsung is due to launch its newest Galaxy smart devices on Thursday and these costly devices are anticipated to provide in terms of earnings and margins, an analyst informed CNBC.The South Korean tech giants high-end flagship gadgets are “trophy” products that signal to the industry at big the sort of innovation the company has in shop for the rest of its line of product, Bryan Ma, vice president for devices research at International Data Corporation said.Reports show that Samsung may reveal three smart devices for the Galaxy S series: S21, S21+ and S21 Ultra to succeed the companys S20 gadgets. The launch will be broadcast at 10 a.m. ET (11 p.m. HK/SIN) on Samsungs website.”I think there is undoubtedly some pressure in the middle of the pandemic, both on units and typically asking price, however in spite of that, this is, naturally, still a flagship item that fits in the market,” Ma said Thursday on CNBCs “Squawk Box Asia.”Typically, Samsung releases its Galaxy flagship gadgets in February or March, close to or during the Mobile World Congress trade show.Ma stated among the reasons that Samsung brought forward the launch to January is to capitalize on Huaweis ongoing struggles by launching a “item like this and grab as much of that opportunity as they can.”Seizing market opportunityAs part of a broader trade battle in between Washington and Beijing, U.S. sanctions have actually crippled Huaweis ability to do organization. At one point last year, the Chinese company had dismissed Samsung as the worlds leading mobile phone maker however that triumph was short-lived and its share of the smart device market shrank.While Samsung picked up some of the market share last year, Chinese mobile phone maker Xiaomi has stepped up its efforts in places like Western Europe to fill in the gap left by Huawei through aggressive promos and presence efforts.One of the huge things that Samsung is betting on is foldables, which most of the rest of the industry does not rather have. And Samsungs already on its second, moving into third generation items nowThat is likewise likely another reason Samsung most likely advanced its launch event, according to Ma. “As much as Xiaomi is known for having lower-end items, theyre also out there stating, Look at this flagship Mi 11 phone with this impressive electronic camera, and all that sort of stuff. This is where Samsung essentially gets to get on stage and say, Look, this is what weve got here too,” he said.The maturity of the mobile phone industry limits the kind of development that companies like Samsung can tout for their brand-new generation of devices. However the worlds largest smart device maker is making development in one area where the remainder of the industry is still playing catch-up. Betting on foldable smart devices”Dont forget, one of the big things that Samsung is betting on is foldables, which most of the rest of the industry does not quite have. And Samsungs already on its second, moving into 3rd generation products now,” Ma stated. He added that he expects a brand-new foldable device to most likely be announced in the second half of 2021. Samsungs president and head of mobile communications company, TM Roh, in 2015 said in an article that the company will expand its portfolio of foldable smartphones, making those gadgets “more accessible to everybody.” That could possibly signify foldable mobile phones with a less large price tag than what Samsung presently has on the market.Still, Thursdays smartphone launch is not likely to move the needle on Samsungs stock price by much. Thats since the primary earnings driver for the company is its profitable semiconductor company that sells memory chips which are used in mobile phones, laptop computers and data.”Nonetheless, this branded Samsung product department, especially again on these high-end products, are still very rewarding for them and should continue to provide in that sense,” Ma said, describing Samsungs IT and mobile interactions business.

SINGAPORE– Samsung is due to launch its newest Galaxy smart devices on Thursday and these expensive gadgets are anticipated to provide in terms of revenue and margins, an analyst informed CNBC.The South Korean tech giants high-end flagship devices are “prize” products that signify to the market at large the kind of innovation the business has in store for the rest of its product line, Bryan Ma, vice president for devices research study at International Data Corporation said.Reports suggest that Samsung might reveal 3 mobile phones for the Galaxy S series: S21, S21+ and S21 Ultra to prosper the businesss S20 devices. At one point last year, the Chinese company had actually dismissed Samsung as the worlds leading mobile phone maker however that accomplishment was short-term and its share of the mobile phone market shrank.While Samsung picked up some of the market share last year, Chinese smart device maker Xiaomi has stepped up its efforts in locations like Western Europe to fill in the gap left by Huawei through aggressive promos and exposure efforts.One of the huge things that Samsung is wagering on is foldables, which most of the rest of the market doesnt quite have. That could possibly signify collapsible smartphones with a less substantial cost tag than what Samsung currently has on the market.Still, Thursdays mobile phone launch is not likely to move the needle on Samsungs stock cost by much.

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