Only a few days ago it was reported that Samsung plan to focus more on the mid-range segment in India in order to cater to the mass audience. Now in a recent interview, the company CEO DJ Koh has confirmed that Samsung will in fact be changing its overall strategy to focus on mid-range smartphones in upcoming markets and appeal better to millennials. Samsung believes by doing so the company might be able to enjoy a higher market share in the budget segment, like it used to a couple of years ago.
In a recent interview with CNBC, DJ Koh stated, “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.”
This in fact means that the company will be shifting focus from its flagship Galaxy S and Note series to its mid-level Galaxy A series for new and innovative features. So, it’s possible that the next unique smartphone feature Samsung comes up with could be first introduced in a Galaxy A smartphone. There is possibility that these smartphones could launch later this year as well.
While Samsung has been dominating in the flagship series with its new Galaxy S and Note smartphones, the company has fallen behind in the mid-range segment over the last few years, thanks to the entrance of Chinese brands like Xiaomi, Vivo, and Oppo. It was reported that the company’s smartphone sales has also taken a 20 percent year-on-year hit in the second quarter of 2018.
With its new strategy, Samsung will be focusing on bigger markets like India and other countries in the Southeast Asian region. These are markets where customers want high-end features but at an affordable price point. Not just that, DJ Koh also spoke about appealing more to millennials with these smartphones, who again want premium features, but don’t have the budget to afford them.
The Samsung CEO stated, “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.”
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Samsung plans to bring its new strategy in effect as soon as possible. The CEO also stated the company to have changed its mobile research and development organization and product planning to better prepare for it. If everything goes smoothly, the new plan will also allow Samsung to launch new and exciting mid-range smartphones more than once a year unlike it does with its flagship smartphones.