Samsung could launch flagship phone early to grab Huawei share – sources

SEOUL (Reuters) – Samsung Electronics Co Ltd 005930.KS could launch its flagship Galaxy S smartphones more than a month earlier than expected in a bid to gain market share from Huawei and push back competition from Apple Inc, three sources familiar with the matter said.

Huawei Technologies Co Ltd has previously challenged Samsung’s leadership position in the global smartphone market, but the Chinese rival is in survival mode with US restrictions choking its supplies of chips used in smartphones and telecommunications equipment.

South Korean chip industry officials are hopeful that Joe Biden’s presidency will ease some of these restrictions, although they are far from certain as they also expect the new US administration to maintain a position firm on China.

Samsung is preparing to launch its new Galaxy S21 as early as late January next year, after it previously launched its S20 flagship phone in early March of this year, the sources said, asking not to be identified because the plan is not public.

Samsung Electronics declined to comment.

The South Korean company shipped 59% fewer Galaxy S20 5G series phones to the United States in the second quarter compared to the previous model’s performance a year earlier, according to research firm Canalys. In contrast, Apple AAPL.O shipped 15% more of its flagship iPhone 11 than last year’s bestseller, the iPhone XR.

Samsung, which lost its No.1 position to Huawei in the second quarter, regained the crown in the third thanks in part to U.S. restrictions on Huawei.

A person from a major smartphone chip supplier said Huawei’s stocks are expected to run out early next year.

Samsung, however, faces increased competition from Chinese rivals like Xiaomi and Oppo, which are expected to take advantage of Huawei’s struggle to retain market share.

Apple also launched its iPhone series in October, about a month later than usual, stepping up the competition.