Samsung will sell 42M tablets in 2013, launch 13.3” tab next year. Sees little growth for flagships in 2014
As high end Android smartphone market approaches saturation point, Samsung’s top of the line Galaxy handset sales are slowing down. But Sammy has seen it coming months ago, and is now in the middle of refocusing its strategy to the areas where there is still some growth left- tablets and cheaper smartphones.
Korean ET news quotes Samsung Wireless Division official who says that they plan to ship 40 to 42 million tablets this year. An impressive 100% growth over estimated 20 million slates it shipped in 2012.
This year Samsung grew its tablet sales mainly by flooding the market with traditional 7-8-10” sized Notes, at pretty low price points. Next year, the traditional models will still be there, but Sammy is growing the screen sizes of its tabs, too.
12”+ Galaxy Note release around CES is now almost a given, but Samsung may take things even further and already has 13.3” tablet in the works. The goal here is to accelerate the erosion of laptop and desktop PC market, especially in business/productivity settings. A dual-boot Android/Windows RT Note will fit very nicely here.
As for smartphones, Samsung expects to sell 300 to 310 million of them this year and forecasts only a modest 20% growth to 360 million units in 2014. However, only 126 million of them will be high end Galaxy S5s and Notes. Which means that Sammy sees very little further growth opportunities for its flagship devices next year.
But no worries here, Samsung mobile device portfolio is too diversified for the slowdown in one category to seriously hurt it overall. The slowdown at the high-end should be offset by the growth of mid-range and low-end devices, where, thank’s to its economies of scale, Sammy can still get respectable profit margins.