Both Galaxy S, Galaxy Note Series of Smartphones Are Expected to See a Drop in Sales for 2021

Both Galaxy S, Galaxy Note Series of Smartphones Are Expected to See a Drop in Sales for 2021

Samsung’s mobile chief stated a few hours ago that the Galaxy Note 21 would not see a release this year due to chip shortages. Even with regular price cuts seen on the Galaxy Note 20 and Galaxy Note 20 Ultra, a large number of customers will always want the best of the best. However, according to the latest estimates, even Galaxy S21 sales are expected to fall.

Despite the Drop in Shipments for 2021, the Galaxy S21 Series Are Still Expected to Sell Better Than the Galaxy S20

Horace Dediu has shared a tweet below, mentioning Tom Kang, who is a senior analyst at Counterpoint Research. He talks about the expected shipments drop of the Galaxy Note and Galaxy S series for 2021. According to Kang, Galaxy Note sales could drop by a fifth to eight million units this year, while the Galaxy S series could drop by five million in the same period.

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However, a previous report states that Samsung has sold 30 percent more Galaxy S21 units in its home market compared to the previous series. It is interesting to note that the excerpt does not mention the Galaxy S21 sales individually, but only the Galaxy S series. This can mean Kang is referring to the combined Galaxy S20 and Galaxy S21 sales. Then again, a total estimated volume of less than 30 million units for Samsung’s entire Galaxy S family is far too less, so we will assume Kang is talking about the Galaxy S21 series.

Considering that the new lineup is cheaper than the Galaxy S20, provides improvements in the camera, delivers a specifications bump, all the while adding stylus support to the Galaxy S21 Ultra, the immediate reaction would be that these would give Samsung an edge in sales. While that might still be possible, do keep in mind that the Korean giant is suffering a chip drought, so it cannot produce Exynos 2100 or the Snapdragon 888, both of which are found in all three Galaxy S21 models.

A chip shortage could be one major factor for the decline in shipments, but we will see if the situation improves. In the later months of 2021, Samsung is expected to launch the Galaxy S21 FE, and looking at how the Galaxy S20 FE was an impressive model in specifications, pricing, and sales, we believe it might improve the overall sales number for Samsung.

News Source: Horace Dediu

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