Samsung Electronics expands supply of cheaper Galaxy FE models to boost share

Samsung Galaxy S20 Fan Edition (FE). [Courtesy of Samsung Electronics]

Samsung Electronics Co. is expected to release several new models in its Galaxy Fan Edition (FE) lineup in an effort to reduce inventory assets and boost smartphone market share.

According to industry sources on Sunday, the South Korean tech giant has been gearing up to release Galaxy FE lineups, including the Galaxy S23 FE and Galaxy S9 FE in the fourth quarter.

FE models, which serve as an entry-level variant, offer essential features found in the flagship S-series launched in the same year. Still, it comes at a more affordable price with slightly reduced specifications.

Prices are usually set between 700,000 won ($528.7) and 800,000 won per unit, which is 30 to 40 percent cheaper than flagship S-series models.

Samsung Electronics did not launch the FE variant for the Galaxy S22 model last year amid concerns about the potential impact the release would have on the company‘s ongoing high-end marketing strategy.

However, Samsung Electronics’ decision to bring FE models into the market after a break is most likely driven by the company’s need to reduce inventories.

Samsung Electronics’ inventory assets amounted to 39.2 trillion won as of the first half of this year, up 19.9 percent from the same period last year amid a shrinking smartphone market with global shipments falling for 8 consecutive quarters.

According to U.S. market intelligence company IDG, Inc., global shipments of smartphones are projected to be reduced by 4.7 percent this year from a year ago.

Samsung Electronics is also hoping to boost its market share by releasing the FE series.

Apple Inc., a major global rival, is expected to reveal its iPhone 15 series later this month. By setting the price higher than the previous series, the U.S. tech firm is expected to continue a strategy that seeks to reinforce its high-end offer.

On the other hand, Samsung Electronics will tap niche demand for smartphones by releasing more affordable models.

The Galaxy FE release could help the Korean tech giant recover its market share in the mobile application processor (AP) market.

Samsung Electronics’ mobile AP, called Exynos, has plunged in market share.

Counterpoint Research, a tech research firm, found that Samsung Electronics’ share in the global AP market decreased to 4 percent in the first quarter of this year, only half of the previous quarter’s figure.

The release of the Galaxy FE marks a comeback of Exynos processors to Samsung smartphones after a two-year hiatus, with the hope of potentially increasing the company’s market share.