Samsung will focus on the premium segment as its growth engine and plans to expand the Note experience across its Galaxy hardware ecosystem, spanning tablets and laptops as well as phones, Roh said. Foldables will also grow into new categories and the company plans to add one or two new smartphone form factors to its lineup within the next three years, he added.
“Under the Covid situation, the smartphone industry raced through changes that might have previously taken a decade,” Roh said. “We are entering the second phase of market growth. There’s growing demand for high-end premium models as consumers are using smartphones longer and in more ways than before.”
The pandemic drove the smartphone market out of its stagnancy — growth had plateaued and replacement cycles were growing longer — and Samsung now sees people more willing to upgrade their phones to get better video calls, gaming and daily communications functions as they rely on their devices for work and play. Initial demand from carriers and partners for the Galaxy S22 phones is up by double-digit percentages relative to the prior year thanks to the new Ultra model, according to Roh.
“The Note series was getting a bit long in the tooth, and it was a clear choice to absorb the S-Pen into the mainstream S-series, especially when the company could now rely on its successful foldable lineup in the second half of the year,” said IDC analyst Bryan Ma. “Foldables do much more for Samsung in differentiating its offerings from the rest of the industry, including Apple, who also tends to launch its new phones toward the end of the year.
Samsung consolidated its mobile and consumer electronics businesses into a single division late last year as part of a companywide reorganization. It did so in order to create a more cohesive ecosystem of products, the company said. Making its devices work seamlessly together is aimed at helping Samsung fend off competition from Chinese rivals like Xiaomi Corp. and Oppo while also addressing the challenge of Amazon.com Inc.
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