Samsung Electronics (005930.KS) reveled the next iteration in the Galaxy S line, the S 21 series. The announcement is about one month earlier than the norm for Samsung although the actual release date will be January 29 (you can pre-order now). From a practical standpoint, while the S21 family is three models, the S21 and the S21+ are quite similar, while the S21 Ultra is a higher end device. The main difference between the S21 and the S21+ is the screen size, with the smaller being 6.2” and the larger being 6.7”, with both the same sizes as last year’s S21 and S21+. Last year’s models (March release) did not have 5G availability and obviously this year’s models do, but a better comparison would be against the October release of the Galaxy S20 FE, which did have 5G, but a 6.5” display. We expect Samsung used the display size reduction in the S20 FE to offset the cost of the 5G modem.
The most important feature however in the S21 and S21+ is the price, which is ~$200 lower than last year’s models, as it seems Samsung begun to recognize that while 5G and other features are certainly of interest to consumers, price is still an overriding factor and the consumer’s sensitivity to price has also increased. In order to bring down the price, aside from 5G modem cost reductions and the usual price pressure Samsung puts on its suppliers, the S21 and S21+ displays have a lower resolution than last year’s models, with this year’s S21/S21+ at 2400 x 1080 against last year’s 3200 x 1440. While this will lower the PPI (pixels/inch) a bit, we doubt it will be a big negative vs. a $200 price reduction.
There are other improvements in this year’s models, such as the use of Corning’s (GLW) latest glass iteration, Victus™ instead of Gorilla Glass 6, although the back of this year’s models are plastic rather than glass, and an upgrade in the chipset (Qualcomm’s (QCOM) Snapdragon 888 in the US and China, which was produced on the 5um node), CPU, and GPU, while the camera setup is almost identical and the battery is slightly larger to compensate for the higher power draw of the 5G networking.
The S21 Ultra is where Samsung appeals to those who want a bit more than a cheaper version of last year’s models, with a slightly larger but higher resolution display, Samsung’s 108MP camera, higher resolution selfie cam, a bigger battery and a higher price, albeit also ~$200 less than the comparable S20 model from last year which had a slightly larger display, somewhat different camera configuration, and a TOF, which is not in this year’s model. One big plus for the Ultra is the stylus option, which opens it to use with Samsung’s S-pen, which has been a staple of the Galaxy Note line in the past. While the stylus is a $40 option, it does lead users away from the Note line, which has been said to being considered for termination either this year or next, with the foldable smartphone line to be expanded as the top end of the Samsung Smartphone offerings.
All in, the overriding factor in this year’s Galaxy S series is price. Samsung has taken this mandate seriously and is looking to price against Apple’s (AAPL) iPhone 12 series that was released late last year. That said, there is much in the way of branding that goes into consumer smartphone decisions which makes direct dollar for dollar and feature comparisons a bit difficult, but in this case not only is Samsung competing with Apple (and many others) but for those that do not mind owning last year’s Samsung model, it is competing against itself in that the Galaxy S20 FE 5G remains available at $100 less than the base price for the new Galaxy S21 5G. While this is always the case with last year’s models, the comparison below shows how close these models actually are, and while the table simplifies a number of the features where there are more subtle differences and newer versions (Chipset/CPU, etc.), we have highlighted the model with the most desirable features in as many categories as possible. Not every smartphone customer would agree on each, but investors can get a general view of how these smartphones compare.
The most important feature however in the S21 and S21+ is the price, which is ~$200 lower than last year’s models, as it seems Samsung begun to recognize that while 5G and other features are certainly of interest to consumers, price is still an overriding factor and the consumer’s sensitivity to price has also increased. In order to bring down the price, aside from 5G modem cost reductions and the usual price pressure Samsung puts on its suppliers, the S21 and S21+ displays have a lower resolution than last year’s models, with this year’s S21/S21+ at 2400 x 1080 against last year’s 3200 x 1440. While this will lower the PPI (pixels/inch) a bit, we doubt it will be a big negative vs. a $200 price reduction.
There are other improvements in this year’s models, such as the use of Corning’s (GLW) latest glass iteration, Victus™ instead of Gorilla Glass 6, although the back of this year’s models are plastic rather than glass, and an upgrade in the chipset (Qualcomm’s (QCOM) Snapdragon 888 in the US and China, which was produced on the 5um node), CPU, and GPU, while the camera setup is almost identical and the battery is slightly larger to compensate for the higher power draw of the 5G networking.
The S21 Ultra is where Samsung appeals to those who want a bit more than a cheaper version of last year’s models, with a slightly larger but higher resolution display, Samsung’s 108MP camera, higher resolution selfie cam, a bigger battery and a higher price, albeit also ~$200 less than the comparable S20 model from last year which had a slightly larger display, somewhat different camera configuration, and a TOF, which is not in this year’s model. One big plus for the Ultra is the stylus option, which opens it to use with Samsung’s S-pen, which has been a staple of the Galaxy Note line in the past. While the stylus is a $40 option, it does lead users away from the Note line, which has been said to being considered for termination either this year or next, with the foldable smartphone line to be expanded as the top end of the Samsung Smartphone offerings.
All in, the overriding factor in this year’s Galaxy S series is price. Samsung has taken this mandate seriously and is looking to price against Apple’s (AAPL) iPhone 12 series that was released late last year. That said, there is much in the way of branding that goes into consumer smartphone decisions which makes direct dollar for dollar and feature comparisons a bit difficult, but in this case not only is Samsung competing with Apple (and many others) but for those that do not mind owning last year’s Samsung model, it is competing against itself in that the Galaxy S20 FE 5G remains available at $100 less than the base price for the new Galaxy S21 5G. While this is always the case with last year’s models, the comparison below shows how close these models actually are, and while the table simplifies a number of the features where there are more subtle differences and newer versions (Chipset/CPU, etc.), we have highlighted the model with the most desirable features in as many categories as possible. Not every smartphone customer would agree on each, but investors can get a general view of how these smartphones compare.
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