Samsung’s sales results for its high-end smartphones fell short of expectations in the first quarter as consumers’ confidence in the brand had yet to fully recover from the recall of Galaxy Note 7. Nevertheless, Samsung continued to do very well in the mid-range and low-end segments of the market. The economically priced, high-performing Galaxy J series sustained Samsung’s shipments and contributed significantly to the expansion of the brand’s overall smartphone production volume. Samsung was the only brand that saw positive growth in production volume during the off season of the first quarter.
Samsung has also released its flagship device for the year Galaxy S8 this second quarter. However, the high-end model is expected to make limited sales contribution because the buzz surrounding the next-generation iPhone devices is dampening demand for products from non-Apple vendors. Samsung is expected to post flat growth for its second-quarter smartphone production volume. The S8 devices and the J series, which are contending for market shares respectively in the high-end and the mid-range to low-end segments, will keep Samsung’s shipments relatively stable in the second quarter. For the entire 2017, Samsung is estimated to increase its production volume by as much as 5% compared with the volume figure of 2016.
iPhone production volume fell by 36% from last quarter and 41% from the year ago quarter. Total production for the second quarter is expected to reach 43 million, a decline of 17% from the first.