Loo Wee Teck, Global Head of Consumer Electronics at Euromonitor International, comments:
"High vaccination figures and the gradual re-opening of markets especially in developed countries will improve consumers' sentiment on discretionary purchases. There is also a pent-up demand for high-end models especially amongst the more affluent consumers. While some consumers will still hold off discretionary purchases, those who purchase will be buying pricier and higher end products.
As we enter the second half of 2021, sales will be strong due to the festive holiday season for both its TV and mobile business. Growth for its TV business will be primarily driven by its premium models like Neo QLED and its Lifestyle TVs that offer higher margins. Samsung's flagship Galaxy S series will come under pressure due to the launch of new iPhone models which were priced competitively. Sales will primarily be driven mainly by its affordable models which may drag down Samsung's Q3/Q4 profits and to a smaller extent, its flagship Foldable series as this is still a relatively niche segment.
Foldable phones will continue to be Samsung's halo product and a profit haven as there is nearly no competition. For the early adopters who are looking for the latest and greatest with a large screen, they will turn to Samsung's Foldable series. We expect Samsung to market the Galaxy Fold and Galaxy Flip aggressively as we move into the critical holiday season to drive even stronger sales."
