Samsung’s latest flagship lineup, the Galaxy S21 series, hasn’t performed as per the company’s expectations. Recent reports suggest that the company held a special review for its mobile business due to the lackluster Galaxy S21 sales.
The news comes just days after we learned that Xiaomi overtook Samsung to become the #1 OEM in the European market.
"Samsung was just playing it safe initially with the Galaxy S21"
Overall Samsung sales are declining. The company has recorded mostly negative sales metrics this year, and a new report estimates that the Galaxy S21 series has sold rather poorly, showing a 20% drop versus the S20 lineup, and a massive 47% decline when compared to the Galaxy S10 series.
According to a report by Business Post, sales of the Galaxy S21 series across its first six months on the market are down 20% compared to last year's Galaxy S20 series.
That's rather surprising, as the S20 series was considered to be a poor seller, prompting Samsung to price the S21 series lower. Compared to 2019's Galaxy S10, the S21 series shows a huge 47% decline in sales across the same period.
The company shipped 58 million smartphones in total during Q2 of this year, up from 54 million units the same quarter last year. But if S21 sales faltered, it means the increase came from entry-level and mid-range devices.
To be fair, Samsung had a bit of bad luck as well. The Galaxy S20 series hit the market right around the time that much of the world was going into strict lockdown due to COVID-19.
The pandemic had already made customers very conscious about what they were spending their money on. Suddenly, $1,000/₹70,000 smartphones didn’t really feel like a necessity.
That may be one of the reasons why the Galaxy S20 lineup shipped 32.6 percent fewer units in Q1 than the Galaxy S10 during the same period last year. Several market intelligence firms put the Q1 2020 shipments for the Galaxy S20 around 8 million units.
The pandemic is still gripping the world and the situation isn’t likely to change significantly by the time the Galaxy S21 is launched.
Samsung is already expected to cut prices across the entire lineup to make the new phones more palatable to customers who are now more cost-sensitive than ever before.
Another worry is that Xiaomi is catching up. The maker already surpassed Apple to become the second largest smartphone maker in Q2 with 53 million units sold during the second quarter.
The South Korean company will have to do better with the Galaxy S22 series.