[Exclusive] Samsung: "Optimal Time for Market Restructuring"... Flooding the Market While Apple and Chinese Firms Hesitate
When memory prices surge, the first product smartphone manufacturers worry about is mid-to-low-end phones. This is because their low selling prices leave little room to absorb rising component costs, and raising prices increases the likelihood of consumers switching to competing products.
However, Samsung Electronics is moving in the opposite direction. To defend profitability, rather than reducing the volume of mid-to-low-end phones, they have chosen to maintain sales volume by leading with the Galaxy A series. In particular, they have allocated more than half of the total A series production plan to the relatively lower-priced A17 and A18 models.
The reason they are trying to protect sales volumes of mid-to-low-end products, even while enduring the negative impact of rising memory prices, is market share. Analysts suggest that since Chinese companies competing with Samsung in the mid-to-low-end market are also exposed to the same cost increases, the market landscape could shift depending on who can hold out by maintaining sales volume.
[Exclusive] Samsung: "Optimal Time for Market Restructuring"... Flooding the Market While Apple and Chinese Firms Hesitate n.news.naver.com Samsung's contrarian move... Expanding production volume of budget Galaxy A series. Taking the risk despite surging memory prices. Focusing production on ultra-low-cost A17 and A18. A move to expand global market share. Diversifying premium phone lineups while using a volume-based strategy in the budget market. When memory prices surge
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