November 22, 2024

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Local analysts are highly optimistic about Samsung Electronics’ Galaxy Note 10 with some forecasting the company’s latest flagship smartphone will surpass its predecessors in sales.

Releasing a report on the smartphone on Sept. 25, Lee Chang-min, an analyst from brokerage firm KB Securities said the overall shipments of the Note 10 lineup are expected to exceed market expectations.

“As the Note 10 has shown a strong sales performance, the shipments of the smartphone will likely reach 10.5 million, up 11 percent from the preceding model,” said Lee, adding “The two-prone strategy with the Note 10 and Note 10 Plus is appealing to consumers.”

The Note 10 and the Note 10 Plus sports 6.3 inch display and 6.8 inch display, respectively.

The Note duo achieved the 1 million milestone in South Korea in 25 days after launch on Aug. 16, a record among for Galaxy smartphones.

The analyst said the delayed entry of competitors in the 5G segment is also one of the reasons for the new Note’s initial popularity.

“Samsung will be able to enjoy the first-mover advantage for a while as the launch of 5G-support smartphones, including those made by Apple, will not hit shelves anytime soon,” the analyst said.

The US smartphone maker will not likely roll out a 5G smartphone in a year while Chinese smartphone manufacturers are expected to face difficulties in the global market because of the ongoing US-China trade war. Huawei Technologies’ high-end Mate 30 smartphone, for example, will not support Google’s operating system Android and other Google apps because of the US’s trade restrictions.

Some analysts also anticipated that parts suppliers for the Note 10 will also benefit from the robust sales.

“Although Samsung Electro-Mechanics’ multilayer ceramic capacitor business is still on a downward trend, the strong sales of camera modules and printed circuit boards will offset the losses,” said Kim Ji-san, an analyst from Kiwoom Securities.

Samsung Electro-Mechanics is the main supplier of triple camera modules for the Note 10 lineup.

Thanks to the Note variants, Samsung has been leading the super high-end smartphone segment so far this year, which refers to smartphones that cost $1,000 or more, according to research firm Counterpoint Research. The company accounts for some 70 percent of the sector. The premium segment grew 552 percent year-over-year in 2019.

By Kim Young-won (wone0102@heraldcorp.com)