Samsung had a very big surprise revealed today, which was possible thanks to the new phone models that it sells all over the world, and of course for the company the news is great. More precisely, the average selling price of Samsung phones increased to $292 in Q1 2020, the highest value recorded in the last 4 years for the company, which shows us that it is selling more and more premium phones, which of course are expensive.
Samsung has increased the prices of its new phone models, from the mid-range ones to the premium ones, and of course including this is seen in the average selling price. We're talking about an increase from $247 in 2019 to $292 in 2020, so it's a combination of higher phone prices, but also more sales of premium phones, which of course is great news for Koreans, done on the back of customers from all over the world.
Samsung: The HUGE SURPRISE brought by the New Phone Models
Samsung has always been very far from Apple in terms of the average selling price for iPhone phones, and this increase only brings it closer, but at a great distance. Samsung has an average selling price for its phones that is about half of what we see for iPhones, but that's perfectly normal because Apple sells more premium phones, while the Koreans sell mid-range models , or cheap.
“Samsung Electronics Co enjoyed its highest average selling price (ASP) of its smartphones in six years in the first quarter of the year, driven by robust demand for flip phones and its flagship smartphones. Samsung, the world's largest smartphone maker, sold its smartphones for an average of $292 in the January-March period, up 8,5 percent from a year earlier.”
Samsung however, it manages to generate much higher revenues thanks to the phones it sells, and the current increase, of almost 20%, is a very important one. That means billions of dollars for Samsung every fiscal quarter of sales, and that money can be used to make better phones in the future, but customers are the ones paying for it all, and not everyone is so happy. .
Samsung did not comment on this disclosure made by American analysts, but he will more than likely confirm everything when he presents the financial results for Q2 2020.
