Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  KOREA EXCHANGE  >  Samsung Electronics Co Ltd    A005930   KR7005930003

SAMSUNG ELECTRONICS CO LTD

(A005930)
  Report  
SummaryNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Samsung Electronics : Apple's new, lower priced iPhone draws tepid response in Asia

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/11/2019 | 05:32am EDT
FILE PHOTO: Kaiann Drance presents the new iPhone 11 at an Apple event at their headquarters in Cupertino

HANGZHOU, China/SEOUL (Reuters) - Apple Inc new, lower priced iPhone that comes with a faster processor but lacks 5G technology disappointed Asia, where cheaper and feature-packed handsets from rivals are already available.

The iPhone 11, launched on Tuesday for $50 less than last year's base XR model, was met with a limp response from social media users in Asian markets that are dominated by Huawei Technologies and Samsung Electronics.

Lowering the entry price point, a rare move from Apple, was likely an effort to attract buyers in China, where Apple has ceded ground to Huawei due to a surge in support from patriotic Chinese consumers after the Chinese brand was caught in the U.S.-China trade standoff, said analysts.

Despite the reduction, the iPhone 11, and even the higher-end models with more camera lenses, are set to come up short in Asia.

"Apple's new phones were no surprise at all. Only tangible change is having an additional camera on their premium model," said Park Sung-soon, an analyst at Seoul-based Cape Investment & Securities.

"However, it is noticeable that Apple has made a price cut for the newest iPhone for about $50, which is a very rare move for the company. The move might be aiming to manage and reduce potential risks drawn by the U.S.-China trade war."

The iPhone 11 will have two back cameras and is priced starting at $699, down from $749 for the XR last year. On Tuesday, Apple also dropped the price of the XR by $150.

The more expensive iPhone 11 Pro will have three cameras on the back and starts at $999. The bigger screen iPhone 11 Pro Max starts at $1,099.

(Graphic: Apple unveils new iPhones - http://graphics.reuters.com/APPLE-IPHONE/0100B28N18J/APPLE-IPHONE.jpg)

"Since we still have to wait a year for 5G, why not just buy Huawei on Monday," said one user on China's Twitter-like service Weibo. Huawei and smaller rival Vivo have already released 5G models in China, and Samsung in South Korea.

A meme doing the rounds on Chinese social media featured Apple Chief Executive Tim Cook bragging about the new features and Richard Yu, CEO of Huawei's consumer business group, shutting him down by pointing out that Huawei has had those features for years.

"(Apple) just added one more camera lens and called it a new feature, meanwhile it is still too pricey," said a user on South Korea's Naver.com web portal.

One of the main draws of the new launch for U.S. buyers - a $5 per month Netflix-like streaming service - will not be available in China.

FEATURES VS PRICE

Counterpoint analyst Neil Shah said the entry price, while lowered by Apple, remains high compared to local rivals. Combined with the lack of 5G, that made the new iPhones "less attractive and future-proof" for Chinese consumers, Shah said, forecasting that Apple will sell 30-35 million iPhones in China this year, down from 63 million phones in 2015.

Apple's share of the China market in the June quarter fell to 5.8% from 6.4% in the year earlier period, according to research firm Canalys. It has also lost ground in South Korea, with market share dropping to 11.2% from 12.5%, according to research firm Strategy Analytics.

In India, a market that Apple has said is key for growth, reaction to the new phones was muted as well.

"I don't believe customers will buy more iPhones now because the new models sport more cameras, it will not move the needle much for them," said Navkendar Singh, research director at IDC India.

Customers in India who care more about owning Apple-branded phones over the latest model are now likely to buy the discounted XR instead, Singh said.

Still, some analysts said that Apple's decision to lower the entry price for the new iPhone, one of the most discussed topics on Weibo on Wednesday, was a positive sign.

"We think the lower iPhone 11 price point and trade-in program will help promote upgrades, specifically in China, while the Apple Arcade and TV+ offerings will help accelerate services growth," CFRA analyst Angelo Zino said in a research note.

The new phones will be available to order on Friday and start shipping Sept. 20.

(Reporting by Josh Horwitz in Hangzhou, Heekyong Yang in Seoul, Brenda Goh in Shanghai and Sankalp Phartiyal in Mumbai; Writing by Sayantani Ghosh; Editing by Jane Wardell and Muralikumar Anantharaman)

By Josh Horwitz and Heekyong Yang

Stocks mentioned in the article
ChangeLast1st jan.
APPLE 0.53% 219.9 Delayed Quote.38.68%
SAMSUNG ELECTRONICS CO LTD End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SAMSUNG ELECTRONICS CO LTD
08:52aSAMSUNG ELECTRONICS : is Leading the Industry with New Standards in Wi-Fi Connec..
PU
07:54aSAMSUNG ELECTRONICS : South Korea files WTO dispute with Japan on export curbs
RE
09/12Apple's new iPhones shift smartphone camera battleground to AI
RE
09/12OH WHAT A NIGHT : The De Lanerolle brothers keeping it real
AQ
09/11SAMSUNG ELECTRONICS : Apple's new, lower priced iPhone draws tepid response in A..
RE
09/11SAMSUNG ELECTRONICS : Apple's new, lower priced iPhone draws tepid response in A..
RE
09/11SAMSUNG ELECTRONICS : Vietnam August trade surplus jumps on Samsung phone shipme..
RE
09/11SAMSUNG ELECTRONICS : Fake News? 1/10 S10 Price Get a Latest Revolutionary Dot-i..
AQ
09/11SAMSUNG ELECTRONICS : Fake News? 1/10 S10 Price Get a Latest Revolutionary Dot-i..
AQ
09/11SAMSUNG ELECTRONICS : Seoul to file WTO complaint over Japan's "discriminatory" ..
RE
More news
Financials (KRW)
Sales 2019 229 668 B
EBIT 2019 26 809 B
Net income 2019 21 053 B
Finance 2019 90 892 B
Yield 2019 3,06%
P/E ratio 2019 14,7x
P/E ratio 2020 11,5x
EV / Sales2019 1 364x
EV / Sales2020 1 278x
Capitalization 313 352 B
Chart SAMSUNG ELECTRONICS CO LTD
Duration : Period :
Samsung Electronics Co Ltd Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 38
Average target price 54 627,18  KRW
Last Close Price 47 100,00  KRW
Spread / Highest target 38,0%
Spread / Average Target 16,0%
Spread / Lowest Target -8,70%
EPS Revisions
Managers
NameTitle
Hyun-Suk Kim Co-President, Co-CEO & Director
Dongjin Koh Co-President, Co-CEO & Director
Kinam Kim President, Co-CEO & Director
Tae Moon Roh Co-President & Head-Research & Development
Sang-Hoon Lee Chairman
Sector and Competitors
1st jan.Capitalization (M$)
SAMSUNG ELECTRONICS CO LTD266 546
APPLE38.68%988 571
XIAOMI CORP--.--%29 061
WINGTECH TECHNOLOGY CO LTD240.09%6 471
MEITU INC--.--%1 053
MERRY ELECTRONICS CO LTD--.--%1 012