Reportedly, the news coming which indicates that the company has decided to hold the launch S22 FE to push the sales of the Galaxy S22 Ultra. It has found that the reason that Samsung Electronics is stopped producing the entry-level model of Galaxy S22 FE was due to the expansion of sales of the top-tier model of the series, which is the S22 Ultra.
The company are bound to take this decision because of the shortage of chip so to allocate the resource Samsung Electronics assign the S22 FE chips to S22 Ultra in order to increase its production.
One of the main reasons for doing this is very clear, as the S22 Ultra which has relatively strong sales facing a shortage of chips. For Samsung Electronics, it is quite advantageous for earning more profit margin to increase production so that they can raise their sales.
S23 FE model is scheduled to produce 3 million units
The company have planning to produce 3 million units of Galaxy S23 FE next year as they disclose the same. Also previously the S22 FE also schedule to produce 3 million units this year, but due to the chip shortage and comparative to the relative sales of the S22 Ultra model in the first two quarters of the year Samsung Electronics is said to cancel the S22 FE release plan. The chip for the S22 FE has been reassigned to the S22 Ultra.
The process of reallocation of chips has been followed in the industry by the time Samsung Electronics launched the Galaxy S22 series earlier this year. And since the supply of chips for the flagship S22 series was tight from the very start, so company reassigned the chip to its best-selling model of this time which is non-other than the S22 Ultra, the most expensive out of the three in the series, drive the chip to the S22 ultra model as much as possible should increase in order to benefit Samsung Electronics in terms of sales and profits.
S22 Ultra exceed expectations
The shipments of the Galaxy S22 Ultra reached 10 million units by the first half of the year.
As we put our focus on numbers then it clearly reflects that Galaxy S22 Ultra has already exceeded the company’s expectations, with respect to Samsung Electronics’ annual S22 series parts production plan in February.
- General type – 12 million pieces.
- Plus 8 million pieces.
- Ultra 10 million pieces.
So the above figure indicates that shipments of the S22 Ultra model are expected to exceed expectations. Also as per observations more than 10 million parts are needed to make 10 million finished products, it is estimated that the order for parts for the S22 Ultra has also increased from the February plan.
Also, the annual shipments of the Galaxy S series have fallen below 30 million units for two consecutive years in 2020 and 2021 after the Galaxy S10 series in 2019, therefore it is quite necessary to increase the sales of the S22 series even through the S22 Ultra.
Z series replaced the Galaxy Note unpacked event
Although Samsung Electronics replaced the Galaxy Note series unpacked event in the second half of the last year with the foldable phone Z series unpacked event, the foldable phone is still a niche product.
The shipments of the Galaxy Z Flip 3 and Z Fold 3, which are being evaluated as successful last year, which is 7.1 million units by the end of last year. Comparatively, it is 30% less than the previous Galaxy Note’s annual shipment of 10 million units.