Samsung said that 60% of pre-orders for the Galaxy S23 series of smartphones were for the S23 Ultra, the most expensive device in the range. Samsung expects double-digit sales growth for its dearer premium smartphones in 2023.
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BARCELONA, Spain – Sale Samsung The flagship smartphone Galaxy S23 outpaced last yr’s S22 in the comparison period, with most buyers choosing the most expensive version of the device, an executive at the South Korean tech giant told CNBC.
Samsung released the Galaxy S23 this month. The series includes three models: the standard S23, the barely dearer S23+ and the top S23 Ultra. The S23 Ultra starts at $1,200.
Patrick Chomet, vp of Samsung Electronics, told CNBC that in comparison with last yr, sales of the S23 have to this point been a lot better than the S22. The S23 went on sale on February 17.
Chomet added that Samsung has committed to “double-digit growth” in the premium segment of its smartphones in 2023, which incorporates the Galaxy S23 series, but additionally the latest foldable phones that were launched last yr.
“So we are in the premium segment, despite the difficult economic environment, we see a everlasting opportunity for us. And the reason is that we are very competitive because we have now brought lots of innovation to this segment,” Chomet said in an interview at the Mobile World Congress in Barcelona on Monday.
Chomet revealed that the most expensive version of the flagship phones – the S23 Ultra – accounted for around 60% of global S23 pre-orders.
“We expect that in some sense the healthy part of the mix will probably be shifted towards the premium side,” Chomet said.
Initial sales of the S23 will probably be excellent news for Samsung, which has had a tricky yr in the smartphone market in 2022. Overall smartphone sales last yr were the worst since 2013, in accordance with research firm IDC. Samsung’s shipments fell greater than 15%, IDC said. The decline was attributable to inflation and deteriorating economic prospects.
Operating profit in the company’s mobile and network business fell 16% year-on-year in 2022.
But there remains to be a requirement for expensive smartphones. In line with data from Canalys, high-end smartphones costing over $800 accounted for 18% of the total cell phone market in 2022, up from 11% in 2020.
That is where Samsung hopes to expand its smartphone business, which is able to offer the company potentially higher margins and higher profits.
Chomet said the S23 Ultra’s higher pre-order percentage is “a sign that while people are more cautious” in the premium smartphone segment, there are still many people “who want the best.”