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Samsung to rely on third-party chipsets to bolster entry-level market

Samsung's plan for taking over the entry-level segment involves working with third-party chipset vendors like Qualcomm, Broadcom, and ST-Ericsson in order to produce models with the highest price-to-performance ratios ever.
January 31, 2013
galaxy s3 mini multiple colors

Though it is currently sitting comfortably at the top of the world Android smartphone market, Samsung is not about to let its own present success get in the way of its success in the future. It owns over 30% of the entire smartphone market right now. What exactly is the South Korean electronics giant worried about?

According to a news report that was recently published in the Taiwanese DigiTimes, Samsung has noted that there will be a decline in demand for smartphones in more mature markets in 2013, a year when more and more high-end phones are being announced and released. As such, the company is trying to look for ways to maximize sales of its mobile phones outside of the high-end handset segment. Samsung is planning to increase sales of models that are not, strictly speaking, “smartphones.” Here’s how it plans to do just that.

Taking over the entry-level segment

Outside of the high-end segment, there are two more spots left for Samsung to take and rise to the top of, and these are the entry-level and the mid-range mobile phone segments. Samsung’s plan for taking over the entry-level segment in particular involves working with third-party chipset vendors in order to produce models with the highest price-to-performance ratios ever. They plan to use this tactic as they go up against the likes of Huawei, ZTE, LG, and Sony.

Samsung has actually done this exact same thing in the past. For instance, for the Galaxy S3 Mini, Samsung worked with ST-Ericsson and used the NovaThor ModAp CPU instead of its very own Exynos chip to get its processing chops in order. They’ve also worked with other chipset vendors such as Broadcom and Qualcomm in the past for similar implementations in other models.

Will Samsung succeed?

The bottom line is that Samsung intends to roll out low-cost models with ample processing power to attract more and more buyers and increase its market share in the entry-level segment. Of course, whether or not that’s enough to actually satisfy the target market is a different subject matter entirely.

What do you think of Samsung’s plan to rule to entry-level and mid-range smartphone roost? Do you think models that use third-party chipset solutions are in the same league as Exynos-powered ones? Or are they roundly inferior? Sound off in the comments.