Samsung Galaxy S23 sales beat S22, enticing MZers

The Galaxy S23 series of Samsung Electronics Co. smartphones have beaten their predecessor Galaxy S22 smartphones in sales volume, less than two months after the former came on the market, the company said on Thursday.

The newest phones have attracted those in their 20s and 30s, who prioritize camera specifications, storage capacity and data processing capability as they increasingly use smartphones to watch videos, take pictures mostly to share on social media, and play games.

The latest Galaxy series have sold 1.7 times more than the Galaxy S22 models in Latin America, including Brazil and Mexico, where they hit the shelves one week behind schedule.

Samsung launched the Galaxy S23 series on Feb. 17, aiming to rival Apple Inc.’s high-end line of iPhones, which take the bulk of the premium phone market.

Since the series' launch, the Galaxy S23 smartphones have sold 1.5 times more than the previous premium models of the Galaxy S22 series in Europe; 1.5 times in the Middle East; and 1.4 times in India.    

At home, the latest models’ sales growth almost matched that of the S22 series in the comparable period, said a Samsung official. Domestic sales of the S23 smartphones have recently broken the 1-million-unit mark.

CLOSER TO SALES TARGET

Such brisk sales appear to lift the world’s largest smartphone brand closer to its sales goals, following a decrease in its mobile phone shipments last year.

During the Galaxy Unpacked 2023 event on Feb. 1, Samsung’s mobile division chief TM Roh said the S23 series’ sales growth would likely outpace that of the S22 series by double digits this year.

Among the three Galaxy S23 models, the S23 Ultra accounts for 60% of sales. The S23 Plus and the S23 evenly split the remainder, according to Samsung.

HIGH-RESOLUTION CAMERA AND DISPLAY

The S23 Ultra takes much clearer pictures and videos than its two other S23 models. As an example, its camera can take a clear picture of the number plate of a moving vehicle from a distance even in the dark.

It is equipped with a resolution of a 200-megapixel image sensor, nearly double that of previous models with 108 million pixels. The image sensor allows for detailed and seamless photographs in any lighting conditions.

To attract online gamers, the entire line of Galaxy S23 series are installed with US chipmaker Qualcomm Technologies Inc.'s next-generation Snapdragon 8 Gen 2 mobile application processor (AP). It enables the S23 smartphones to process graphics 41% faster than the S22 series.

Moreover, the S23 series are powered by high-capacity and highly efficient batteries to keep the phones cool while gaming.

MARKET CONTRACTION

The latest S23 series came on the market as the global smartphone market is expected to contract this year amid a grim economic outlook.

In late January, just ahead of the Galaxy S23 series launch, Samsung said it expected a sequential decrease in market demand across all smartphone segments.

Global smartphone shipments are projected to decline 1.1% this year to 1.2 billion units from the previous year, according to the International Data Corporation (IDC).

But the upbeat sales of the Galaxy 23 line could offset the grim outlook as Samsung is ramping up efforts to catch up with Apple in the premium market, or for smartphones with a price tag of $600 or above.

In the high-end mobile phone market, Samsung’s Galaxy series make up 15%, far behind iPhone's 75%, according to market tracker Strategy Analytics.

In terms of overall shipments, however, Samsung overtook Apple last year, taking 23.6% of global smartphone shipments. Apple accounted for 18.7%.

To sustain the strong sales momentum of the Galaxy S23 series, Samsung will unveil foldable smartphones of the Z Flip series – Z Flip 5 and Z Fold 5 – in the second half of this year.

Industry watchers said the upcoming foldable phones might feature bigger displays and improved camera functions to differentiate from their predecessors.

The foldable phone segment is expected to expand with nearly 22 million units, or a 50% increase, this year, while the overall smartphone market contracts, according to the IDC.

The segment's growth will be driven by their lower prices than conventional smartphones as an increasing number of original equipment manufacturers (OEMs) participate in the foldable phone market.

Write to Jeong-Soo Hwang at hjs@hankyung.com
Yeonhee Kim edited this article