South Korean electronics titan Samsung plans to overhaul part of its smartphone strategy and prioritize the introduction of cutting-edge technology to its mid-range stratagems, the company’s mobile Chief Executive Officer (CEO) told CNBC in an singular interview last week.
Korean Electronics Giant Joins People to Develop Cheaper, High-Spec Phones
As growth in the global smartphone merchandise decelerates, industry leaders including Apple Inc. (AAPL), China’s Huawei Technologies and Samsung obtain been forced to rethink their strategies and hedge against avoiding smartphone unit sales. Samsung’s decision to jazz up its lower-end badges before its more expensive models is reflective of the firm’s larger bet on the Millennial consumer and its defensive disturb against rivals in growth markets.
(See also: Huawei Overtakes Apple as New #2 Smartphone Maker.)
“In the biography, I brought the new technology and differentiation to the flagship model and then moved to the mid-end. But I take changed my strategy from this year to bring technology and differentiation senses starting from the mid-end,” Samsung’s CEO DJ Koh told CNBC.
Instead of leading the new tech to the flagship Galaxy S and Note series of devices, cutting lead features are expected to come to the Galaxy A series by later this year.
The purposefulness follows a 20% year-over-year (YOY) drop in sales for Samsung’s mobile arm in the second quarter, bogged down by lower-than-expected sales of the higher-end Galaxy S9 tools. While Samsung historically led in the lower-end market, competitors including Huawei, Oppo, Vivo and Xiaomi Corp. beget all rushed to offer cheap, high-spec phones as competition ramps in rise markets like India and Southeast Asia.
Koh also highlighted the for to attract the “millennials who cannot afford the flagship.” He stated that “deep innovation” should “differentiate the mid-section” and harness the younger cohort of tech-savvy consumers.
Samsung basic teased a foldable phone in 2014 with a concept ad. Earlier this year, The Go under Street Journal indicated that the device could have a 7-inch fix display, which will reportedly fold in half like a pocketbook and allow the exterior to display a small bar of information.
(See also: Apple to Fire Latest Batch of Updated iPhones.)