Samsung is currently depending on its cheap phones

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  • 6 years ago
  • Posted: November 3, 2015 at 9:37 am

Samsung has incredible phones that are considered top tier. However, few of their brands get sold out. People prefer Samsung’s low end and mid range smartphones. The company was able to attract more Kenyans after it released the Samsung Galaxy J1. The phone has amazing features and most people prefer using it as their primary handset and that’s one of the reasons why Samsung is currently depending on its cheap phones.

Samsung reported an increase in smartphone shipments in the third quarter over the same period last year. But Samsung’s more expensive phones are a disappointment in the company’s growth, according to Counterpoint Technology Market Research’s data report.

Samsung was forced to bite the bullet after it got huge competition from other Chinese companies like Huawei and Xiaomi. The company opted to make cheap phones that have relatively fair features. The J family is doing well in the market indicating potential in the low end market. In Kenya, people need a phone that has basic features and can last longer. The company has shown interest in holding the highest market share in the smartphone market but the tight competition is holding it down. Reports claim the company is currently making less profit as it used to in 2013 and 2012. The company is not slashing its prices on mid- and lower-end phones enough to face up to Xiaomi Corp., Huawei, Lenovo Group Ltd. and other Chinese companies who are offering competitive handsets at lower prices.

Experts believe Samsung will one day be faced-off by other Chinese companies that specialize in low end devices. “Chinese brands are already hitting very hard in this price segment in online channels.” Researcher in the data firm said.

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Samsung shipped 84 million smartphones in the third quarter of 2015, 6.3% more than during the same stretch last year and more than the No. 2 and No. 3 players, Apple Inc. and Huawei Technologies Co., combined. However, from the shipment, the company recorded a decline in overall high end sales.

Samsung is currently depending on its cheap phones because its high-end phones accounted for 40 percent of the company’s overall smartphone sales in the third quarter, down from 55 percent a year ago. Over the same time, phones priced at $200 or under accounted for 38 percent of sales versus 30 percent last year. The Galaxy J series outsold any other lineup, including the Galaxy S6, Galaxy Note series or the midrange Galaxy A series. Cnet reports.

The Galaxy J5 and J7 are doing well in the market, but the J5 recorded the highest sales in September because it’s cheaper.” The phone helped Samsung recover market share in markets like India where it had been experiencing market share loss,” Tom Kang said.



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