A production drop proves the Galaxy Note 20 was a bad idea
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We've relayed this notion in our Galaxy Note 20 review score, but Samsung's significant drop in the Note 20 series production plans only comes as an actual proof that a $999 plastic phone is facing an uphill battle in the market.
The Elec is reporting that Samsung has cut its production targets for the Note 20 Ultra 5G and the Note 20 with a significant percentage, from 800,000 per month, to 600,000, inflicting a bit of unforetold suffering for all the component suppliers involved.
The bulk of the production cuts is coming for the Galaxy Note 20, claim the industry sources, even though its sales ratio to the Galaxy Note 20 Ultra is 1:2. Perhaps releasing a "glasstic" phone with 60Hz display whose price bordered on a grand has something to do with it, and not even the S Pen stylus could save its value-for-money ratio. The price is in past tense, as most retailers (but not Samsung), have been running $200 or more discounts on the Note 20 and S20 series, yet the damage seems to have already been done.
Interestingly, Samsung reported a 50% increase in phone-related profits this past quarter, despite the tepid S20 and Note 20 flagships sale reports. This means that a significant part of its phone revenue is coming from the midrangers like the A-series, and explains why Samsung has been paying so much attention on its enhancements recently. On the other hand, we get to learn that Samsung is working on a much cheaper foldable phone model for next year, so we can't wait for the clock to strike midnight on 31st.
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