Samsung is facing a major setback in Galaxy S20 sales. But perhaps the coronavirus is not the only cause.

According to the Korea Herald, the new flagship line had a disastrous launch in South Korea, with sales down 50% from the Galaxy S10 launch. South Korea, the company's home country, is considered a leading indicator of the health of Samsung's smartphone sales. Samsung smartphones have always performed better than in other countries. Worldwide sales are not yet known, but this does not look good at all.

According to the paper, Samsung sold an estimated 70,800 units of the entire Galaxy S20, Galaxy S20 Plus, and Samsung Galaxy S20 Ultra series on the first day of their launch. By comparison, the Galaxy S10 sold 140,000 units at launch and the Galaxy Note 10 sold 220,000 units last August.

The Korea Herald quoted a carrier official as claiming that "sales were affected by discounts on new models and a sharp drop in the number of customers visiting offline stores due to concerns about coronavirus infection."

They also blame the decrease in carrier subsidies and price increases. And this last sentence may actually be the key here. [While there is no doubt that the coronavirus has played a role in this calamity, the fact remains that flagship sales are not the blockbuster event they once were.

Samsung's Galaxy S10 was another sales disappointment for the Korean company, leading to a sharp price drop just five weeks after its launch and barely two weeks after its launch. And before that, the Galaxy S9 was a sales flop. This has been going on for the past three years.

It's as if, coronavirus or not, people are fed up with flagship prices. Apple has experienced a similar drop in sales of its more expensive flagships, which is why the company is trying to get back on track with the $699 iPhone 11 and the soon-to-be-expected $399 iPhone 9, aka iPhone SE2.

Apple's move regarding the price of the base model of the iPhone 11 proved this point correct. By lowering the price of the base model, Apple was able to turn the tide on its previous flagship devices. Companies like Xiaomi, on the other hand, have been able to build successful businesses by offering high-quality, yet low-priced flagship models.

So what will Samsung do? It raises the price of all Galaxy S20s, including the base model. The Galaxy S10 started at $899, the Galaxy S10 Plus at $999, and the Galaxy S10 Plus 5G at $1299. The Galaxy S20 was $999, the Galaxy S20 Plus $1199, and the Galaxy S20 Ultra $1399.

And Samsung didn't bother to replace the Galaxy S10e, which started at $749. Instead, it slashed the price of last year's Galaxy S10 lineup.

Does Samsung really believe it can continue to raise prices in a highly commoditized cell phone market? Why ignore the writing on Apple's wall and its own price history?

Perhaps Samsung will drastically reduce the price of the S20 in the coming weeks, as they did with the S10. Perhaps the strategy is to release it at a high price to take money from early adopters and then lower the price later.

Sales in Korea have certainly been affected by the coronavirus, but the trend is clear. It is natural to think that this competition for the craziest new features, along with the biggest profit margins and price increases, is not sustainable. It must end.