Samsung's Galaxy S23 Battles Bigger Challenge Than The IPhone 14

Consumers love Samsung's flagship phones for their advanced features, and the new Galaxy S23 series continues that tradition, especially with the 200-megapixel main camera on the top-end Galaxy S23 Ultra. But Samsung itself and US carriers have become popular thanks to deep discounts trying to attract new customers.

But the deal is about to sell.

In recent years, wireless carriers have subsidized the price tags of high-end phones to get customers to sign long three-year contracts. This helped people buy more expensive phones, as sales of cheaper phones continued to decline .

One day with Samsung's new Galaxy S23 Ultra

But Verizon and AT&T have both said they will reduce promotional offers on phones, signaling a shift in carrier dynamics. This can have a big impact on American consumers seeing high-end phones as good buys on all brands, especially Samsung.

IDC research director Nabila Popal said, citing Samsung president and head of mobile practice TM Roh, who drew the company's attention to Reuters, "there is more concern about Samsung because they consider the development of premium devices to work hard." A high-end mobile phone in the future market.

But that doesn't mean consumers are getting a bad deal with the new Galaxy S23 phones starting at $800 for the S23 Ultra and going up to $1,200. Popal says Samsung is keeping the price the same as last year's model, so consumers are paying the same price for a better chipset and camera.

But no doubt, expensive phones are becoming more popular thanks to the trade discounts and promotions supported by the carriers. "If it goes down, it will definitely have a negative impact on the industry," Popal said.

While rival Apple is facing a completely different case, Samsung isn't the only company keeping an eye on the dynamic smartphone market. iPhone sales fell 8 percent this holiday season , due in part to a Covid-19 shutdown and protests at Chinese sites where Apple phones are made, leading to a shortage of supplies for the company's high-end iPhone 14 Pro series. People just can't get enough of the iPhone.

Samsung's challenge is to continue to convince people that its phones are worth the money without multi-carrier discounts to ease the damage on consumers' wallets. With Samsung Unpacked and the launch of the new S23 series, Roh hopes the tough economy could be a time for expensive phones to shine.

"When times are tough, people are more careful about the choices they make," Roh told CNET editor-in-chief Lisa Idichico through an interpreter. "In other words, they try to get more value."

Samsung's latest high-end phone could be a test balloon for other phone makers, as macroeconomic conditions and low subsidies add more uncertainty to the mainstream market. However, the S23 phones will help Samsung stay competitive until the next batch of devices arrives, which is expected to be the new Z line versions expected to arrive in August.

"Expanding its foldable and 5G portfolio through 2023 will help Samsung strengthen revenue growth and maintain its leadership in the contract market," said David McQueen, research director at global technology intelligence firm Abby Research.

Whether this 5G feature or folding will be considered good value is still a big question in an age of limited offerings.