Galaxy Note20 Early Box Office Success... COVID-19 Resurgence as a Variable

Demand for fixed fans caught up with the 'GalNote10'
But COVID-19 is an obstacle to sales rebound in the second half

On the 13th, customers are receiving the Galaxy Note20 at the 'Galaxy Note20 5G Drive-Thru Event' hosted by SK Telecom in the outdoor parking lot of Bitplex in Seongdong-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Han Jinju] Samsung Electronics' 'Galaxy Note20' has achieved early success in sales. However, with the rapid resurgence of the novel coronavirus infection (COVID-19) in South Korea, there remains a possibility of missing this hard-won chance to recover.

According to industry sources on the 20th, the estimated volume of Galaxy Note20 units sold through mobile carriers during the pre-order period is around 700,000 units. The proportion of unlocked (self-paid) sales in the overall mobile communication market has reached 10%, and with the increase in unlocked sales due to COVID-19 and other factors, this has expanded to the mid-teens percentage. Samsung Electronics stated that pre-order sales reached about 90% of the previous Galaxy Note10, which sold more than 1.3 million units over 11 days.

In particular, sales of the Galaxy Note20 Ultra were more than twice those of the Galaxy Note20. The most popular color is the main color, 'Mystic Bronze.' The primary buyers are men in their 30s to 40s. An industry insider explained, "The proportion of online mall sales is almost the same as that of the Galaxy Note10."

Although early sales have been successful, it has become difficult to predict future success. The spread of COVID-19 is still not under control, and the number of confirmed cases in South Korea is increasing as much as it was in March. The smartphone market, which barely recovered after June, is likely to shrink again.

In the second quarter, Samsung Electronics' global smartphone sales volume was 57 million units, a decrease of 7 million units compared to the previous quarter. Flagship smartphone sales were heavily impacted by COVID-19. Furthermore, in the second quarter smartphone shipment rankings announced by market research firms, Samsung lost first place to Huawei. According to Canalys, Samsung's second-quarter smartphone shipments decreased by 30% year-on-year to 53.7 million units, while Huawei recorded a 5% decrease to 55.8 million units, taking first place.

Not only the Galaxy Note20 but also the upcoming 'Galaxy Z Fold2,' scheduled for release in September, is facing warning signs in sales. Samsung Electronics is expanding its mid-to-low-end product lineup and strengthening online sales and marketing to reduce dependence on offline channels.

Kim Dongwon, a researcher at KB Securities, forecasted, "Samsung Electronics' IM division smartphone shipments in the third quarter will reach 79 million units, a 43.6% increase from the previous quarter, driven by new product launches and increased demand in Europe and India."

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