Samsung is reportedly falling short of its Galaxy S22 sales target. When it launched the new flagships earlier this year, the company aimed to sell 30 million units of the three models combined. But according to the Korean media, the sales volume is well off the target with just a few days left in 2022.
The new report doesn’t specify how many Galaxy S22 units Samsung has sold so far. But it states that sales have been sluggish for the past few months. The excitement around the new Galaxy flagships died down quickly after the GOS (Game Optimization Service) controversy. The company was found artificially throttling the performance of the devices in the name of battery efficiency and thermal management. Many potential buyers drifted off the Galaxy S22 lineup following this controversy.
The ongoing global economic slowdown also likely affected Galaxy S22 sales. Samsung has already revised its overall smartphone sales target for 2022 twice. It originally aimed to ship 300 million smartphones this year but lowered that to 270 million in May. The company then followed up with another revision in August, lowering the target to 260 million. It’s unclear whether it will hit the new target or if it will fall short of that as well. We shall find it soon.
The average selling price of Samsung Galaxy devices is increasing
Samsung sells smartphones across every price point, something not many other OEMs do. While some play exclusively in the budget and mid-range market, others focus on the premium segment. But the Korean behemoth does everything. This helps it drive sales volume, easily making it the world’s largest smartphone vendor.
However, as you just saw, flagship models account for less than ten percent of Samsung’s overall smartphone sales. Things don’t change much even if you add the Galaxy Z series foldables to that. Mid-range models are the company’s volume drivers. Take, for example, the Galaxy A12 and Galaxy A02 were its two best-selling models globally last year. The entry-level handsets sold 51.8 million and 18.3 million units, respectively. No wonder its average selling price (ASP) is quite low.
But according to the new report, that’s increasing steadily. In Q2 2020, Samsung’s ASP was $280. That increased to $328 in Q2 2021 and $383 in Q2 2022, thanks to increased sales of 5G models and foldables. Of course, the figure is nowhere near Apple’s $959, but the Korean firm plays an entirely different game than the iPhone maker. So that’s understandable. As foldables grow in popularity, Samsung could see a further increase in its ASP.
That said, Samsung will have more competition in the foldable market next year. Industry analysts expect at least ten brands to sell a foldable smartphone in 2023. The Galaxy Z Flip 4, which has been the crowd favorite since its launch, is already losing grip in markets outside South Korea. Samsung will have to be on top of its game to maintain the foldable lead in the coming years.
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