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Samsung Offers Phone Delivery Service in Parts of South Korea

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Samsung Electronics Co. has reportedly launched a smartphone delivery service to enable customers in some parts of South Korea to test its newly launched products.

Per Reuters, customers willing to try out the Galaxy S20 can now have one delivered to their homes and can use the phone for up to 24 hours, after which it will be picked up by a delivery worker.

Contactless Delivery Most Suitable

Notably, In China, companies like McDonald’s (MCD - Free Report) and Starbucks (SBUX - Free Report) have launched similar services to keep their customers and workers safe from the infection.

Both companies have ramped up their contactless pickup and delivery services while customers who visit the stores will have to order remotely via mobile phones or in-store computers.
 

Samsung Electronics Co. Revenue (Quarterly)

Moreover, Yum China, which has accelerated its contactless delivery as a result of the crisis, stated that the service has been well-received by customers and is ensuring that its delivery business continues to hold up during this time of significantly reduced dine-in customers.

Samsung’s New Service to Curb Coronavirus Impact

Samsung has been making efforts to brace itself for the headwinds brought on by the coronavirus outbreak and the launch of the service is part of these efforts.

Notably, the company has cancelled promotional events like ‘Galaxy fan parties’ and cut down on in-store zones for trying-out new phones. While the Galaxy Note 10 had 130 such zones in South Korea, the Galaxy S20 only has nine.

The coronavirus outbreak is expected to affect the smartphone industry with most of the companies having their supply chains in China. Additionally, analysts predict the outbreak to reduce demand for smartphones by half in China, the biggest market for these devices.

Major smartphone players have lowered their revenue expectations and taken steps to minimize the business impact of the virus outbreak.

Notably, Apple (AAPL - Free Report) lowered its guidance for sales that was set only a few weeks ago while Xiaomi live-streamed its smart phone launch event due to restriction on travel and large gatherings in China.

Although Samsung is likely to be affected by the coronavirus outbreak in China, the launch of its game-changing devices like the Galaxy S20 series and the Z Flip is expected to provide it a competitive edge against its peers once the crisis ends.

Zacks Rank

Samsung sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

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