The truth: How was the Galaxy Note20 series received by users? How many pre-orders were there?
Tiberiu Dobre: Most of our users already have a history with both the brand and this range of products. The Galaxy Note20 series is enjoying success, and this does not surprise us, because in general Samsung flagships are very well perceived by the public. The elements of innovation brought by the Galaxy Note20 series, such as the accuracy of the S Pen improved by 40% for the Note20 and 80% for the Note20 Ultra compared to the Note10 series, the 120Hz screen refresh rate, the advanced Samsung Notes application, but also the partnerships with Microsoft’s productivity and gaming ensure its success, which we noticed in the pre-order period, where we registered about 14% more pre-orders than last year.
How did smartphone sales for Samsung evolve during the pandemic?
We noticed a real change in the evolution of smartphone sales during the pandemic, which fluctuated constantly. During March-May, locally, sales decreased and we managed to sell only three quarters of the sales volume for the same period in 2019. We adjusted this trend by improving the online sales service, guaranteeing a fast shopping experience. handy and secure, so that users can order products online and receive them through a secure, contactless delivery, directly to the door, thus facilitating the need to purchase.
Since mid-June, sales have started to recover and we are getting closer to the results we had in the same month last year, witnessing a change in the way users started to relate to smartphones, but also to the need to buy, being much more modest. Galaxy Note20, for example, is a recommended device for this moment, being designed to support full productivity for users who need more than just a phone, because now it is more important than ever to be able to solve as many tasks as possible. directly from your smartphone, and we consider that we have the right products for any type of need and budget.
The return of the smartphone market
What is the smartphone sector in which Samsung has scored the best in sales this year: low, midrange or flagships?
Portfolio diversity is a strong point for us. Of course, the purchase decision will always be made according to everyone’s budget, and users generally focus on phones that are as complete as possible in terms of functionality, with a balanced value for money. Of course, there is still great interest in the range of premium phones in that it offers the best specifications when it comes to cameras, processor, battery life, but also design and access to various unique user experiences, but the best-selling phones from the Samsung portfolio are the phones from our mid-range series – Galaxy A. They offer a complete set of specifications, at a very good value for money. From this point of view, mid-range phones are equipped with some of the top specifications on flagships, and the mid-range phone market accounts for about 57% of the total value of phones sold by Samsung.
The global smartphone market has suffered quite a bit in the pandemic. Do you think he can get back to the numbers he recorded before? If so, when?
It will certainly return to the figures it recorded before, as consumer interest in these devices will not decline in the long run, on the contrary. But most likely, this will not happen this year, as expected.
Thus, overall, from a quantitative point of view, in terms of the smartphone market in Europe, we see a decrease of 1.4% compared to the same period last year. The smartphone market in Romania is in line with the European trend, registering a decrease of 1.8% compared to the first half of last year, and the value of local smartphone sales stood at approximately 240 million euros in the first half the year. But since June, our sales have started to grow and reach the level of sales in the same month last year. So we are optimistic that this trend will continue in the last months of the year and we expect to end the year with a minimum contraction of only a few percent. This is also justified by the fact that most purchases have moved to the online environment, where we have noticed a significant increase between May and June 2020 and we also believe that online shopping will be a suitable choice for more and more users.
Folders, where to?
Samsung currently has two different types of foldable phones. Will you continue to launch two separate devices in this sector or will you keep only one once you examine the needs and desires of users?
With the first generation Galaxy Fold, our goal was to create a completely new category of devices that offer unique experiences. Then we tried to bring a more compact and elegant design and created the Galaxy Z Flip, for all those who see technology as a way to express their personality. This proves that we are constantly up to date with user feedback and always try to make significant changes to provide the best foldable experience possible.
With recent events, the importance of flexibility, choice and creation of a portfolio of devices to meet the needs and lifestyles of our users has taken on a new form. For example, in a recent survey of potential buyers of foldable devices, we found that 83% spend more time at home and 68% use more devices. The survey also showed that 76% preferred a device for all needs. This data has helped us understand that users appreciate the folding system, whether we are talking about a more compact format, in the case of Z Flip, or a larger display, as we find on the Z Fold 2. We will continue to develop In parallel, these two product ranges provide users with foldable experiences that are best suited to their work style and content consumption.