Countermeasures: Samsung Counters Apple, Xiaomi with Entry-level Smartphones | BusinessKorea

Saturday, October 22, 2016

28 October 2014 - 3:27pm

Samsung Electronics has decided to change its strategy to keep its dominant position in the Chinese market with the launch of entry-level products. Samsung's move is to fight back against offensives of Chinese handset makers, including Xiaomi, which snatched the top spot from the Korean tech giant in the Chinese market in the second quarter. The move is also aimed at countering the popularity of the Phone 6.

According to industry sources on Oct. 26, three Galaxy A series handsets with LTE features will be introduced to the Chinese market as early as this month under the names of Galaxy A3, Galaxy A5, and Galaxy A7.

After rolling out the Galaxy Note 4 in the Korean and Chinese markets first, the largest Android phone maker is also gearing up to release new mid to low-range phones in the Chinese market. The Galaxy A3, the Galaxy A5, and the Galaxy A7 are going to be showcased one after another.

The three models are similar with the Galaxy Alpha, in that all of them have metal frames and curved designs. In price competitiveness, the new versions stand on an equal footing with Chinese smartphones in the price range of 500,000 won (US$475).

Since ultra-low-cost phones are going to be showcased at the end of this year, Samsung believes that it can maintain its position in the Chinese market by touting the price competitiveness of those products, in addition to the company's premium image.

The Korean tech company is also planning to emphasize price competitiveness in its competition with Apple. Even though Apple is seeking to dominate the Chinese market by stressing its premium image, Samsung thinks that it can keep enough competitiveness against Apple with the Galaxy Note 4, the Galaxy S5, and the Galaxy Note Edge.

An industry source said, “As far as I know, Samsung reached the conclusion that it has no choice but to greatly increase the supplies of entry-level products with high specs in the Chinese market, even if it means less profitability. Since the Chinese market is the largest market in the world, Samsung apparently thinks that it is the only option to check the influence of Chinese handset makers and Apple.”


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