Samsung’s Strategy for the Second Half of 2023: Flagships and Mid-tier Market Focus

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As we enter the second half of 2023, smartphone brands are eagerly launching their new devices, hoping to revitalize the market that is yet to fully recover. Among them, Samsung stands out with its ambitions to captivate consumers with flagship models while maintaining stability in the mid-to-low-end segment.

However, the Galaxy A and M series, targeting the mid-range to low-end market, have faced lackluster sales. To reverse this trend, Samsung is gearing up to unveil new devices in the coming months, including the highly anticipated Galaxy Fold/Flip5. This foldable flagship is seen as a game-changer that could drive up shipments in the latter part of the year.

The company’s flagship models, which encompass the Galaxy S and Fold/Flip series, account for about 20% of its total shipments. Within this segment, foldable devices contribute approximately 5% to the overall sales.

On the mid-tier front, Samsung is planning to introduce the S23FE series later this year, targeting the mid-range flagship market. Although the S23FE will feature a dual-platform of AP configuration, catering to different regional markets, it will be equipped with older-generation processors. As a result, its potential to significantly boost sales might be limited. According to TrendForce’s estimate, the total production and shipment of the S23FE series are expected to be less than 1.5 million units by the end of 2023.

A comprehensive view of Samsung’s strategy reveals that the second half of 2023 will be driven by the flagship Fold/Flip and FE series. Despite the company’s efforts, the overall performance will still be influenced by the prevailing economic conditions, posing significant challenges.

Notably, the decision to unveil the FE series in the fourth quarter marks a strategic departure from the previous year’s delay of the S21FE until the following year’s first quarter. This move by Samsung demonstrates a strong commitment to address the market gap resulting from the absence of the A7x series mid-range models. By positioning the mid-tier flagship as a compelling marketing point, Samsung aims to entice consumers to upgrade their devices, potentially bolstering the company’s sales and maintaining a robust presence in the highly competitive smartphone market.