Samsung will choose: TO BE OR NOT TO BE?
Is Samsung Term Over?
The times that Samsung dominates everywhere is finally over. Samsung is under severe pressure and will probably go more directly hijacking Apple’s premium customers. They have no other choice.
Samsung is the world’s largest mobile phone manufacturer. The last 3-4 years they have had massive success with putting in Apple’s trend. While Apple slept an hour, Samsung was quick to perceive the trend that Apple started with mobile phones. And all of a sudden Samsung started with a smartphone supplied at a reasonable price. In a few cases with clean copies, but otherwise just loosely inspired by Apple’s ideas on how to tighten a phone and a computer together. At the end of the day, people loved it. Samsung has sold millions of smart phones especially the cheap ones. Samsung has been big on that mobile market, but tech customers were not so loyal just like we saw with Nokia.
Samsung is stressed nowadays
In China and India, which together represent more than a third of the world’s population, Samsung is no longer number 1. In both countries, local producers took over. Precisely local engagement is one of the reasons for the success. Samsung’s being everywhere strategy caused Samsung to miss the local peculiarities that can give them benefits in each country. Only American brands, which still has a special status in the world, can get away with it.
The Chinese can sell half
Local producers on the other hand know their market better than Samsung, and they are willing to sell really cheap, to get the bigger piece of the pie. In China Xiaomi, who has only been in business for four years, sells phones for half the price of a Samsung. Think that, with the same specifications.
Will Samsung Select Apple’s way?
The question is whether Samsung also in this situation choose the Apple way. Dropping the lower end of the market to focus on premium customers who are more brand-loyal? There is almost no other choice. There is simply no money in price dumping, so if Samsung would like sell phones at a profit; it must be the expensive phones.
At least one thing the launch of the iPhone taught us that while one (Apple) can get scary strong in the mobile phone industry, another (Samsung) may go from one the world’s largest to be completely out.