4, Aug 2017

Overwhelming sales of Galaxy S8 and S8+ fuel the average selling price of Samsung phones

Thanks to the robust sales of the Galaxy S8 and S8+ in the quarter April-July this year the average selling price (ASP) of Samsung smartphones has gone up to a three-year record high at $235. According to Strategic Analytics, in Q2 2017, Samsung sold a total of 93 billion smartphones out of which the Galaxy S8 duo sold over 19 million units. The ASP is poised to increase further this year in view of the fact that the Galaxy Note8 is going to launch within a few week's time with stellar features.

The Galaxy S8 and S8+ were launched in April this year against the backdrop of the ignominious saga of Galaxy Note7's withdrawal following several reports of the Galaxy Note7 batteries going up in flames. There was a great concern on the part of Samsung as to how the new flagships would be received due to the fact that the Galaxy Note7 fiasco had taken a toll on the reputation of the company.

But contrary to the perception, the Galaxy S8 and Galaxy S8+ were warmly received by the users across the globe. The duo when launched notched up a record number of sales leaving the Seoul based firm scrambling to meet the demands initially. Even after months both the handsets have maintained an impressive sales figure.

What worked in the favor of the Galaxy S8 series was its top notch specs and features coupled with multi layer supreme quality checks to avoid any repetition of the Galaxy Note7 like saga. According to Strategic Analytics in the period of April-June this year Samsung has managed to ship 19.2 million units of Galaxy S8 and S8+ out of the total of 93 million of total shipments which included the budget as well as the mid-range devices.

Since the high value Galaxy S8 duo has sold in record numbers, it has resulted in increasing the average selling price (ASP) of all the smartphones from Samsung. In Q2 2017, the average selling price of Samsung smartphones stands at $235 (approx INR 14,963) which is the highest figure in the last three years. Back in 2013, the ASP was at $289 (approx INR 18,402) thanks to the spurt in the sales of flagship models such as the Galaxy Note3 and the Galaxy S4.

For comparison, the ASP of Samsung smartphones in 2016 was $232 (approx INR 14,772) which slipped to $227 (approx INR 14,455) in the second half of the year in the wake of the withdrawal of ill fated Galaxy Note7.

Since the whole spectrum of the smartphones from Samsung sold well last quarter, the company has managed a share of 21% in total global shipments of smartphones from across all the OEMs. With that share of the market, Samsung has maintained its numero uno position amongst all the vendors.

The ASP is also expected to witness an upward swing later this year as the Galaxy Note8 with first ever dual camera setup on Galaxy handsets, 6.3-inch QHD+ Infinity Display, 6GB RAM and Snapdragon 835 or Exynos 8895 SoC is set to launch on August 23, which will further juice the sales for Samsung.

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