Samsung says S23 sales ahead of S22; Most people buy S23 Ultra

Barcelona, ​​Spain — Sales of Samsung’s flagship Galaxy S23 smartphone last year surpassed the S22 in a period compared to the majority of buyers choosing the most expensive version of the device, an executive at the South Korean tech giant told CNBC.

Samsung launched the Galaxy S23 this month. The series features three models: the standard S23, the slightly more expensive S23+, and the top-of-the-line S23 Ultra. The S23 Ultra starts at $1,200.

Patrick Chaumet, executive vice president of Samsung Electronics, told CNBC in an interview that compared to last year, sales of the S23 are much better so far than the S22. The S23 went on sale on February 17th.

Chomet added that Samsung has committed to “double-digit growth” in the premium segment of its smartphones in 2023, which includes the Galaxy S23 series and also its latest foldable phones launched last year.

“So we in the premium sector, despite the difficult economic environment, see a steady opportunity for us. The reason is that we are very competitive, because we have brought a lot of innovation into this sector,” Chomet said in an interview. at the Mobile World Congress in Barcelona on Monday.

Chomet revealed that the most expensive version of the flagship phones – the S23 Ultra – accounts for around 60% of the global S23 pre-orders.

“We kind of expect, a healthy part of the mix, skews toward the premium,” Chomet said.

Initial sales of the S23 would be welcome news for Samsung, which has had a tough year in the smartphone market in 2022. Overall smartphone shipments last year had their worst year since 2013, according to research firm IDC. IDC said Samsung shipments fell more than 15 percent. The decline was due to inflation and the deterioration of the outlook for the economy.

Operating profit in the company’s mobile and network businesses fell 16% year-over-year in 2022.

But there is still a demand for expensive smartphones. Canalys data shows that high-end smartphones, which cost more than $800, accounted for 18% of the total phone market in 2022, up from 11% in 2020.

This is where Samsung hopes to grow its smartphone business that will offer the company higher margins and better profits.

Chomet said the higher percentage of pre-orders for the S23 Ultra is “an indication that although people are more careful” in the premium segment of the smartphone market, there are still plenty of people “who want the best of the best.”