Samsung is feeling the pressure from Chinese manufacturers and will, therefore, revamp its mid-range offerings with new cutting-edge tech in order to attract millennials and other growing markets. When it comes to Samsung smartphones, Galaxy S or Note flagship models are usually the first to spring to mind, which is not surprising considering they come bearing the brand's latest technology. But that's about to change as Samsung will now pass the tech torch to cheaper models in order to appeal to millennials.
DJ Koh, the president of the Samsung Mobile Communication Business, told CNBC in an interview Monday that the new strategy for the more affordable Galaxy A series comes amid a “slowdown in the handset market.”
The Galaxy S9 did not sell as well as the company had expected, which Samsung says is the reason for its 20 percent sales drop year-on-year in the second quarter of 2018.
The South Korean tech giant is feeling the pressure as ambitious Chinese brands such as Xiaomi, Huawei, Oppo and Vivo are launching cheaper high-spec phones in what once was “a segment of the market that it used to dominate,” notes CNBC.
India and other countries in Southeast Asia are proving to be a valuable market for competitive mid-range smartphones, and that's the market that Samsung has set its eyes on.
"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," Koh said.
This means that it won't necessarily be the next Galaxy S or Note series getting a first taste of the cutting-edge features, according to the report, it will be one of the mid-range models, starting as soon as this year. Furthermore, Koh revealed that there could be multiple smartphones in that price range being released each year, rather than just one.
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