Samsung today announced it will overhaul its line of smartphones to take on competitors that are promptly outdoing it in the mid-to-low range segment. This comes after the company’s third quarter revenue set it for the worst year since 2011.
The world’s leading smartphones manufacturer and exporter recorded a declining market share (in annual considerations) for the third straight quarter from July to September, performing well below Apple Inc. in the premium market. The company was also beat by the likes of Xiaomi Inc., Lenovo Group Ltd at the bottom level, according to a research study carried out by Strategic Analytics.
Sammy’s top executives have been saying the South Korean company will revamp its lower-priced devices to give a shot of adrenalin to the Samsung’s price competitiveness. Samsung will also make use of high-quality components to stand out from the competition in the market.
In a show of baffling statistics, the Electronics giant revealed that its third-quarter profit dropped by an annual 60.1, a below par performance for the top grossing global exporter. Profits for the mobile division dropped by 73.9 % in the third quarter.
Samsung did not launch any new flagship device for the most of the third quarter and continued to struggle to get a grasp of the market against completion from high quality, cheaper devices. These developments follow a news article that we recently covered highlighting how the company has been trying to come up with a strategy to re-capture the Chinese market, and outdo competitors such as Xiaomi.
Samsung’s director of investor relations, Robert Yi, said the firm would release new mid-tier device models within the fourth quarter, although he didn’t explicitly specify what features would be included.
Market analysts say the company will be likely to sacrifice profit margins so as to protect its market share. In the coming years, less costly devices will drive the global smartphones market growth, which means a trend towards lower prices would be in the best interests of Sammy.