Samsung in Shopper Electronics: From Merchandise to Ecosystems

Samsung loved a stellar 2021, as excessive demand continued to be pushed by pandemic-related curiosity in TVs, sensible wearables and headphones. Nonetheless, Samsung continues to really feel intensifying competitors from China, particularly in smartphones.

Income soars for Samsung in 2021 after the preliminary pandemic shock

After the disruption the pandemic precipitated for smartphones, the important thing class for Samsung, in 2020, the corporate managed to generate sturdy double-digit progress in 2021. Specifically, Samsung TVs, tablets and sensible wearables noticed a steady pandemic-related uplift, as shoppers shifted their out-of-home spending in the direction of electronics and home equipment. The fast-growing headphones class, particularly TWS earbuds, contributed to Samsung’s progress in transportable electronics. Buying Harman in 2017 with its model JBL helped Samsung to develop its share on this class, particularly in European markets. Samsung additionally strongly benefited from its semiconductor and reminiscence enterprise, the quickest rising division in 2021, supported by world demand for PCs, gaming laptops, and new launches of 5G merchandise, together with smartphones.

^{Supply: Euromonitor Shopper Electronics analysis, 22ed}

Ecosystem retention and providing a variety of companies

Samsung is investing in constructing a cross-division ecosystem, beginning with its Galaxy Ecosystem, as ecosystem retention turns into extra essential than maintaining shoppers in a specific product class. Additionally prompted by its closest rival Apple, Samsung has been widening the companies and content material supplied on its sensible TVs.

Samsung is investing closely in R&D and immediately owns many components of the manufacturing chain. The corporate has its personal foundries and show panel manufacturing capabilities below its Gadget Options unit. This advantages Samsung by way of having early entry to new applied sciences and ensures higher value management than if shopping for parts from its opponents.

^{Supply: Euromonitor Shopper Electronics analysis, 22ed}

From merchandise to ecosystem: Will Samsung leverage its vast product portfolio?

Samsung, nonetheless, has chosen a special route by way of its content material and income era from companies in contrast with its rival Apple. Whereas Apple TV+ is a month-to-month paid service, providing primarily its personal content material, Samsung’s Plus TV content material service is a free, ad-supported service, providing predominantly third-party content material. It expanded to extra areas in 2021, now out there in 23 international locations, and continues including companies. In 2021, for instance, Canela.TV grew to become out there, one of many first AVOD streaming companies for US Hispanics.

Producing appreciable curiosity, Samsung has additionally introduced Samsung Gaming Hub, set to launch later in 2022 on its sensible TVs, partnering with NVIDIA GeForce NOW, Stadia and Utomik. The video games streaming platform will permit customers to find and stream video video games and rapidly launch them with linked consoles. As gaming is rising dynamically worldwide, this might give Samsung an enormous aggressive benefit, offered it continues to develop its partnerships with main console gamers, reminiscent of Microsoft and Sony.

For additional perception, learn our World Firm Profile, Samsung Corp in Shopper Electronics (World).