As Jong-hee Han, head of the group’s so-called Device eXperience (DX) division and thus responsible for the Mobile eXperience (MX) department, in which the smartphones and tablets of the Galaxy series are located, according to the DigiTimes declared that the competitiveness of the mobile device business should be increased again.
Less cost reduction, more quality
At the same time, the focus is said to be shifting away from reducing costs. Instead, Han wants to ensure that the Galaxy ecosystem continues and expands with a focus on technology and brand equity. It remains to be seen what concrete consequences the waiver of the obligation to be profitable for the planned products of the Korean group will have.
Samsung is currently in a difficult position. While one sells one’s own high-end smartphones relatively successfully, one does not achieve the same enormous quantities for a few models as is usual with Apple. Instead, Samsung has so far been able to capture its market share primarily through the cheaper smartphone series such as the Galaxy A portfolio. However, these models do not bring in that much money, even if they make a good impression, at least in the statistics, and have made Samsung the global market leader in terms of quantities. Recently, however, the pressure from the competition in the form of a large number of Chinese manufacturers such as Xiaomi, Oppo & Co has increased massively, which means that the margins are also falling on the cheaper smartphones.
The new strategy proclaimed by Han also seems to fit in with the rumor that Samsung has created a new chip team within its mobile division. Market observers assume that Samsung wants to work with this team, led by a former Qualcomm employee, on a new, proprietary smartphone SoC that can be tuned much better to the in-house Galaxy models than the Exynos SoCs from Samsung’s semiconductor division.
See also:
