CES 2022: Samsung Galaxy S21 FE – No Longer Crucial, Still Competitive

Context

In 2020, Samsung had a problem. At the beginning of the year, Samsung launched its flagship Galaxy S20 line with its usual high-end specs, but those improvements came at a cost: the least expensive Galaxy S20 model started at $999. The price point was neither unprecedented nor unwarranted, but it left a huge chunk of the premium smartphone market unserved without an updated Galaxy phone in the high-volume $650 - $850 price bracket. Then the pandemic hit, and it was not clear if the super-premium market would hold up at all. (It did, but that came later.) For fall 2020, Samsung rushed to market a new, lower-cost Galaxy S20 with most of what consumers actually needed in a premium phone for $699, and called it FE, or “Fan Edition.” This crucial addition ahead of the 2020 holiday sales season solved a serious problem for Samsung, and consumers loved it.

In 2021, Samsung wasn’t going to make the same mistake twice, and when the Galaxy S21 line launched in February, it came in multiple versions, starting at $799. Last fall, Samsung launched new foldables, but not a Galaxy S21 FE. Arguably, it wasn’t needed; between the Galaxy S20 FE and the regular Galaxy S21, Samsung had the critical $700 - $800 price points covered. Now we’re in 2022. If history is any guide, the Galaxy S22 should be launching in the coming months, but Samsung is using CES to launch the Galaxy S21 FE after all.

Analysis

The Galaxy S21 FE is a fairly straightforward device: it has the same design in a few new colors (white, graphite, olive, lavender) and most of the same specs as the original Galaxy S21 for $699. Critically, U.S. carriers are subsidizing it, so with the right plan or trade-in, it can cost significantly less.

The Galaxy S21 FE features a Qualcomm Snapdragon 888, a 6.4” AMOLED FHD+ display with 120Hz refresh rate and 240Hz touch sampling rate, a triple camera system (12MP main, 12MP wide, and 8MP zoom), and lots of software features, including Object Eraser, which Samsung launched on the Galaxy S21 before Google advertised the feature heavily for its Pixel. The selfie cam around front is 32MP. The body is 7.9mm and IP68 rated for water resistance and hides a 4500 mAh battery. The Galaxy S21 FE will also run on all the latest networks including mmWave, T-Mobile’s 2.5GHz “UC” network, and even C-Band on AT&T and Verizon once the FAA and FCC sort things out (as of this writing, delayed two weeks to mid-January).

This specs-per-dollar ratio is good, especially in the U.S., where LG was Samsung’s traditional Android competition, and Chinese phones is limited to OnePlus and a handful of models from Motorola and TCL, and not Xiaomi, OPPO, Realme, and others. In the U.S., Google’s Pixel 6 will provide the strongest competition outside of Apple; while the Pixel 6 does not have a telephoto camera, it undercuts the Galaxy S21 FE on price by $100. That price difference may not matter much if consumers take up carriers on their promotions. Verizon and T-Mobile are offering the Galaxy S21 FE for free with trade-in; AT&T is offering a discount without a trade-in:

  • AT&T: $160 off the base model, $50 off the 256GB model, no trade-in required on a 36 month installment plan. AT&T Enterprise deals are significantly better: up to $550 off on two year plans.

  • T-Mobile: Free (up to $700 off) when trading in an eligible device on Magenta MAX or Sprint MAX; $400 off when trading in an eligible device on ANY plan with 24 monthly bill credits; BOGO with 24 monthly bill credits when adding a line.

  • Verizon: Free (up to $700 off) when trading in an eligible device on select Unlimited Plans.

 

A “Fan Edition” Targeting SMB & Enterprise?

Businesses buying devices for their employees are actually a good fit for a value-oriented device that offers strong processor performance, dual-SIM (even in the U.S.!), solid and flexible imaging options, and good battery life.

Samsung is quick to highlight its Knox security and mobile management suite options, which are best in class for Android. DeX is on board, which can enable wireless hot desk functionality (though still with some app and UI limitations), and Microsoft integration (Link to Windows is particularly useful). Samsung has also been adding to its business services: Samsung Care+ for Business provides tech support and advance ship device repairs, an extended warranty of up to five years, and coverage for accidental damages.

 

To discuss the full implications of this report on your business, product, or investment strategies, contact Techsponential at avi@techsponential.com or +1 (201) 677-8284.

 

Press Release

https://news.samsung.com/us/meet-s21-fe-5g-flagship-smartphone-ces-2022/