Samsung to Produce 20 Million Units of 'Galaxy S22' Next Year

[Asia Economy Reporter Eunmo Koo] Samsung Electronics is reportedly taking a conservative approach to the production volume of its next-generation flagship smartphone, the ‘Galaxy S22’ series, for next year, citing the relative underperformance of the ‘Galaxy S21’ series and a shortage of semiconductor chip supply.

On the 4th (local time), IT specialist media PhoneArena predicted that Samsung Electronics will produce 20 million units of the S22 series next year.

Samsung’s conservative stance on the production of the S22 series is primarily due to the ongoing global shortage of semiconductor chipsets. Major smartphone manufacturers, including Samsung Electronics, Apple, and Xiaomi, are receiving fewer parts than demanded, with 90% of global smartphone manufacturers experiencing the impact of semiconductor shortages.

Market research firm Counterpoint Research forecasted this year’s global smartphone shipments to reach 1.41 billion units, a 6% increase from last year. This is a downward revision from the previous shipment forecast, which expected a 9% growth compared to last year when smartphone shipments sharply declined due to COVID-19.

The relatively poor performance of the previous ‘Galaxy S21’ series is also considered a contributing factor. According to Counterpoint Research, the S21 series sold 13.5 million units in the six months following its release in January, which is about 20% less than the approximately 17 million units sold by the ‘Galaxy S20’ series during the same period in 2020.

The S20 series, which emphasized high specifications and high prices, was classified as a model that failed to reach 30 million units in annual sales, partly due to the spread of COVID-19. Although the S21 series advanced its release date and, for the first time in a flagship model, set the base model price below 1 million KRW to enhance price competitiveness, it appears to have underperformed compared to its predecessor so far.

Meanwhile, the shipment volume by model for the S22 series is expected to see the base model account for 50-60%, increasing its share compared to the previous generation. The Plus (+) model and Ultra model are expected to account for 20% and 20-30%, respectively. Last year, the S21 line had the base model making up 40% of total production, with the ‘Galaxy S21+’ and ‘Galaxy S21 Ultra’ each accounting for 30%. The ‘Galaxy S20’ series had the base model at 40%, the ‘Galaxy S20+’ at 40-45%, and the ‘Galaxy S20 Ultra’ at the remaining 10-15%.

The S22 series is anticipated to be the smallest flagship model released by Samsung Electronics in recent years. The screen size of the S22 is expected to shrink to 6.06 inches (15.4 cm). Samsung last released a flagship smartphone with a screen size under 6 inches in 2019 with the ‘Galaxy S10e,’ which had a 5.8-inch (14.7 cm) display. Subsequent flagship models, including the Galaxy S20 and S21 base models, featured 6.2-inch (15.7 cm) screens.

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