Samsung Switches Smartphone Strategy

Samsung  Electronics is preparing to overhaul its smartphone strategy at the mid-range price point in order to attract more millennial customers, according to the company’s mobile CEO.

DJ Koh stated that the South Korean giant is changing its smartphone strategy for its mid-priced Galaxy A series of smartphones amid a slowdown in the handset market.

Rather than introducing new technology into the flagship Galaxy S and Note series of devices, Koh said that Samsung will aim to bring a host of cutting-edge features to its cheapest models first. The first of these devices will come later in this year.

“In the past, I brought the new technology and differentiation to the flagship model and then moved to the mid-end. But I have changed my strategy from this year to bring technology and differentiation points starting from the mid-end,” stated Koh during an interview.

The move comes amid a global smartphone slowdown with Samsung feeling the bite of pressure. The sales in its mobile division dropped 20 percent year-on-year during the second quarter of 2018. The company attributed it to the lower-than-expected sales of its high-end Galaxy S9 device.

At the same time, Chinese players Huawei, Oppo, Vivo, and Xiaomi are all providing high-spec devices at cheaper prices, which is quite putting some pressure on Samsung in a segment of the market that is used to dominate.

In spite of the global slowdown for smartphone, some markets such as India and other countries in Southeast Asia are expanding. However, the consumers in those markets are chasing after cheaper-but-high-spec devices.

Koh said that the strategy switch is also an attempt to attract more millennial users.

“So we are very much focusing on millennials who cannot afford the flagship. But how can I deliver meaningful innovation to our millennials? That’s the reason I’m trying to differentiate the mid-section,” said Koh.

He stated earlier this year that he changed Samsung’s mobile research and development organization and product planning to prepare for the shift.

Koh even stated that Samsung could release the mid-priced models more often than just once a year.

On another matter, Samsung will also unveil the details of a foldable smartphone later this year, according to DJ Koh, amid the rumors that such a device was in the works.

DJ Koh stated that “it’s time to deliver” on a foldable device after consumer surveys that were carried out by Samsung indicated that there is a market for such a device.

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