Counterpoint: Apple’s $749 iPhone 12 entry point hit a ‘massive sweet spot’

From “Samsung Galaxy S21 Facing Challenges Ahead of Intensifying Competition and Uncertain 2021” posted last week:

Research Analyst Sujeong Lim commented, “Galaxy launch dates over the past two years have crept closer to the iPhone, but prices have not. Last year’s delay from Apple coupled with an accelerated launch from Samsung puts the Galaxy S21 within 12 weeks of the iPhone 12 launch – this is not ideal from a price comparison standpoint.”

Better specifications does put the Galaxy S21 at a higher price point, but Ms. Lim believes Samsung is likely feeling pressure to keep prices as low as possible. “The iPhone 12 is hitting a massive sweet spot with its $749 entry price. Furthermore, we are now in mid-winter, with the impact of COVID-19 only intensifying across key markets. Pricing will need to improve from S20 levels for Samsung to avoid disappointment.”

Jeff Fieldhack, Counterpoint Research’s Director of US Mobile Devices and Carrier Strategies, highlighted the potential impact of releasing too close to Apple’s launch in key markets like the US. “Stellar iPhone 12 performance is not only helping Apple have its best iPhone year ever, it is taking the wind out of competitors’ sails by dominating promotions, shelf space and the online space. In addition, in the North America market, there is a post-holiday lull of flagship sales in January and February, making it a challenging time to make a significant product launch.”

Cue the chart:

apple iphone sweet spot samsung

My take: My heart goes out for Samsung. Interesting to see the iPhone 12 through their eyes.

3 Comments

  1. Greg Lippert said:
    Better specifications? How? Better processor, no, better screen, no, better camera, doubtful. Better OS, heck no.

    5
    January 13, 2021
    • Fred Stein said:
      Up voted.

      The Apple / TSMC combo is already way ahead. No one will beat on spec’s.

      User experience? No contest. Coming soon Apple 5G silicon.

      2
      January 13, 2021
      • Romeo A Esparrago Jr said:
        “ Coming soon Apple 5G silicon “

        Yes, not even Qualcomm can stop that.
        Not even with QCOM’s investor press release today:
        “/qualcomm-to-acquire-nuvia”

        1
        January 13, 2021

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