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Expect even more smartphone models from Samsung
According to ETNews, Samsung Electronics is gearing up for a change in its smartphone marketing strategy. The technology giant is actually planning to sell even more models than it currently does, in a bid to appeal to a broader consumer base.
So, the rumors that we’ve heard about four, or possibly eight, different versions of the upcoming Galaxy Note 3 appears to be the first of many future ranges which will offer consumers a broader choice of options within each product line. But is this really such a good idea considering that the smartphone market is already ultra-competitive?
Well that’s actually the point, according to Samsung. The smartphone market is already so heavily saturated with products, smartphone penetration has already surpassed 70% in North America, Europe and East Asia, that manufacturers need to look further afield in order to find new business opportunities. Emerging markets like South America and Africa are areas which Samsung would love to break into, but the company currently can’t compete with the price point of cheaper products coming from China.
To combat this growing problem, Samsung supposedly intends to attract budget orientate consumers through product diversification and customized services. In other words, Samsung wants to offer consumers more choice, and products that fit with the particular type of market.
[quote qtext=”Our strategy is to maximize the market share with a number of small hit models, not one single mega hit model” qperson=”” qsource=”” qposition=”center”]
Looking at the Galaxy S4, it’s certainly possible that sales were hindered by increased competition in saturated Western markets from the likes of the HTC One, Xperia Z, and other high-end handsets, and that the price point was simply too high for emerging markets. Samsung appears to acknowledge that there have been some issues with the sales of the Galaxy S4, but intends to learn from them.
[quote qtext=”We will turn the crisis caused by Galaxy S4 into an opportunity to accelerate new innovations” qperson=”” qsource=”” qposition=”center”]
But perhaps another concern is whether or not a change is strategy will affect Samsung’s premium brand image if catering? It’s certainly a business strategy that Apple has been keen to stay away from for that very reason, but as Samsung already offers a range of products, perhaps it will be the company to get this one right.
The most important thing for us though, it what this means in terms of products. If this is the direction that Samsung takes in the future, then I suspect that we’ll probably end up seeing a lot more variation within product ranges rather than hundreds of different names, just like what we’re now expecting with the Galaxy Note 3. We already have some choice when it comes to storage models, and being able to choose between camera quality, screen types, or RAM amounts seems equally reasonable.
But, do consumers really want to spend time picking and choose parts to suit your budget and needs, or will more choice simply be lost in an already massive market?