Samsung posted a record $7.8 billion operating profit in Q4 2016, but it looks like the company isn't making as much money from high-end devices as it previously used to. In a report published today, The Investor shared findings from South Korean investment fund Hana Financial Investment, which stated that the revenue from high-end smartphones accounted for just 29% of Samsung's global sales in Q1 2017. That's down from the 40% the company enjoyed in 2015 on the back of the Galaxy S4.
Market research firm Strategy Analytics noted that the average selling price of Samsung phones in 2016 was $232 globally, down from $289 in 2015. It's no secret that the smartphone segment is plateauing in developed markets, and as a result Samsung is increasingly looking to India and China to drive growth.
Samsung noted "improved profitability" in the entry-level and mid-range segment in Q4 2016, and the company is looking to boost the competitiveness of its budget offerings by introducing features that were previously limited to the high-end segment. Case in point: the Galaxy A 2017 series now comes with water resistance and 16MP cameras. The Galaxy J series — Samsung's best-selling lineup in India — is also set to pick up new features for 2017.
Samsung will be hoping to increase revenue from high-end devices in the coming quarters, which will undoubtedly be aided by the release of the Galaxy S8 and S8 Plus.
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Harish Jonnalagadda is a Senior Editor overseeing Asia at Android Central. He leads the site's coverage of Chinese phone brands, contributing to reviews, features, and buying guides. He also writes about storage servers, audio products, and the semiconductor industry. Contact him on Twitter at @chunkynerd.