Samsung Electronics Co., Ltd., Changing its Strategy for Mid-range and Low-end Phones

https://korean-electronics.com//inquirySamsung Electronics plans to modify its midrange and low-end smartphone strategy, preloading the advanced technology on the mid-range and low-end smartphone including the Galaxy A series and expanding the release of new models.

This means Samsung will apply radical reform and innovation in all fields of smartphone including production, technology development and marketing, and significant changes in strategy of Samsung’s smartphone are thus expected.

Koh Dongjin, President of Samsung’s IT & Mobile Business, said in an interview with CNBC of the United States, “We plan to show new technology and differentiated products starting from the midrange and low-end smartphones. We will introduce mid-range and lower-end smartphones broader than existing ones by working out a new strategy.” President Koh announced that he would apply a mid-range and low-end smartphone strategy different from the conventional one even after the release of Galaxy Note 9 last month.

Samsung’s plan is based on the phenomenon that the premium smartphone market remains sluggish, such as the prolonged flagship model replacement cycle, while the demand for mid-range and low-end phones is growing, particularly in emerging markets. In addition, it seems that Samsung has a willingness to pre-empt the Chinese makers, such as Huawei, Xiaomi, Oppo, Vivo, etc., from expanding their positions in the market of mid-range and low-end phones.
Samsung Electronics has loaded the cutting-edge technologies to its mid-range and low-end smartphones like the Galaxy A series and plans to release new products incorporated with such technologies within the year. In the past, Samsung introduced new technologies to premium smartphones and then expanded them to mid-range and low-end products. However, it will now apply the ‘differentiated technologies’ to the midrange and low-end phones.

As the first case of applying the ‘two-track strategy of new technologies’ to its Galaxy smartphones, Samsung Electronics is expected to differentiate its core technologies by preloading the in-display fingerprint sensor to the Galaxy S10, and triple cameras to the Galaxy A (2019) series, respectively.

It is expected that supply expansion and product diversification of the midrange and low-end smartphone will soon move into high gear when Samsung releases the mid-range and low-end smartphones equipped with customized special functions by market.

In addition to modifying its mid-range and low-end phone strategy, Samsung Electronics has also made clear its target customers. President Koh said, “The strategy organization for mid-range and low-end smartphones will have a positive impact on targeting the millennium generation (the generation born in the 1980s to early 2000s).

Samsung’s plan is based on the awareness that it needs to differentiate itself with mid-range and low-end phones for the millennial generation which feels burdened in purchasing flagship smartphones. Samsung’s strategic move is to lead a potential premium audience from a long-term perspective.
Samsung Electronics intends to actively target the emerging markets with high demand, such as China, India, Latin America, Southeast Asia, etc., by increasing the differentiated mid-range and low-end smartphones. Samsung’s plan is to discover and lead new trends and demands.

In this context, Samsung Electronics reveals its determination to continuously compete with Apple in the premium smartphone market, while also competing with Chinese makers in the mid-range and low-end phone market.

CNBC and other foreign media evaluated that Samsung Electronics revised its mid-range and low-end phone strategy in order to cope with the sluggish global smartphone market.

They added that Samsung’s intention was to reorganize the structure with the ‘demand competition’ centered on mid-range and low-end smartphones, while avoiding ‘profit competition’ depending on the premium smartphones.

President Koh suggested that Samsung had prepared for a strategic change long before, saying “We made significant changes in our mobile R&D organization earlier this year before modifying the strategy on mid-range and low-end smartphones.”

korean-electronics.com | Blog Magazine of korean electronics, brands and Goods

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