Samsung Electronics to Release Numerous 5G Phones... Differentiates with 'Foldable' (Comprehensive)

Samsung Electronics IM Division Conference Call Summary
Offering 5G Smartphones in Various Price Ranges
Continuously Launching New 'Super Flagship' Foldable Phones
"Will Expand Capacity to Increase Foldable Phone Production"

[Asia Economy Reporter Han Jinju] Samsung Electronics aims to improve its performance by diversifying its 5G smartphone lineup from mid-range to flagship models and differentiating premium smartphones such as foldable phones.

On the 30th, Samsung Electronics announced that its sales for the fourth quarter of 2019 increased by 7% year-on-year to 2.52 trillion KRW, and operating profit rose by 1.01 trillion KRW (66.88%) to 2.52 trillion KRW.

Annual operating profit did not surpass the 10 trillion KRW mark. The IM division's operating profit decreased by 900 billion KRW (8.84%) from the previous year to 9.27 trillion KRW, marking the first time in eight years that it fell short of 10 trillion KRW. Annual sales increased by 6.59 trillion KRW (7%) to 107.27 trillion KRW.

In the fourth quarter, smartphone sales reached 75 million units, and tablet sales were 7 million units, slightly up from the same period last year. Thanks to 5G smartphones, the Galaxy Note10, and the Galaxy A series, the fourth quarter showed relatively favorable results. Competition is accelerating across all segments, from flagship to mid-range models, with Chinese manufacturers such as Apple and Huawei joining the fray. Samsung Electronics is leveraging flagship high-spec models and strengthening profitability in the mid-range lineup as its weapons.

Lee Jong-min, Executive Director of Samsung Electronics' Wireless Business Division, said, "As the market changes, we will lead the trend and actively respond to fierce industry competition by expanding 5G adoption and introducing new designs for foldable phones to differentiate premium products. We will operate 5G smartphones across a wide price range and quickly adopt the latest technologies to continuously strengthen the competitiveness of mass-target products."

In the first quarter of this year, new smartphones will be released one after another. Samsung Electronics plans to launch the 'Galaxy Z Flip' in February and the 'Galaxy S20' series in March. This strategy aims to stimulate replacement demand with foldable phones priced in the mid-to-high 1 million KRW range and the Galaxy S20 series with significantly enhanced camera specifications. Preparations to expand foldable phone production are also accelerating.

Executive Director Lee said, "Foldable phones have been positioned as super-premium products differentiated from smartphones and are expected to become a major category in mobile devices in the future. We will continuously introduce innovative technologies and new products that meet customer needs. We are expanding capacity to increase foldable phone production and plan to offer products to more customers."

With the full-scale rollout of 5G services, this is an opportunity to drive smartphone replacement demand. 5G commercialization will begin in the U.S. this year, and 5G deployment is expected to expand significantly with events such as the Tokyo Olympics. Global 5G smartphone shipments are projected to reach 200 million units this year. Samsung Electronics is targeting emerging markets by expanding its mid-range smartphone lineup, including the Galaxy A51 and A71, and releasing 5G models, while simultaneously pursuing upselling strategies.

Executive Director Lee said, "The market is expected to see increased smartphone demand due to the spread of 5G commercialization this year, but key components such as APs, memory, and cameras will become higher-spec, and competition among companies is expected to intensify. Although hardware spec upgrades and cost burdens will arise from 5G adoption, we will pursue upselling based on enhanced competitiveness and secure profitability through operational efficiencies across manufacturing, R&D, and marketing."

He added, "The reorganization of the entry-level smartphone lineup centered on the Galaxy A series has somewhat settled, and mid-range smartphone profitability stabilized in the second half of last year. ODM production is currently limited to low-priced models and is operated under the same policy as last year. We will monitor market feedback and competitiveness to determine future directions."

This content was produced with the assistance of AI translation services.