Samsung’s smartphone business strategy has been greatly adjusted, focusing on folding mobile phones and coping with the impact of Xiaomi


According to foreign media reports, Samsung Electronics has made major adjustments to its smartphone business strategy, focusing more on foldable smartphones in order to maintain its competitive advantage over the rapidly rising Chinese mobile phone suppliers.
In less than a decade, Chinese smartphone manufacturers have provided a diversified model lineup at a lower price, thus gaining competitiveness. This makes Samsung have to adjust its strategy and focus on high-end smartphones with high average price in order to make profits, rather than increasing market share through low-end models.
Roh Tae moon, head of Samsung mobile communications, recently said that the technology giant would “expand its portfolio of foldable smartphones so that everyone has easier access to this breakthrough category”. He refers to Samsung’s strategy of popularizing high-end smartphones. To achieve this goal, the world’s largest smartphone supplier will release the latest Z flip and Z fold models next week and cut prices by up to 20%.
Although the exact price of the unpack event on August 11 has not been announced, the 20% price reduction will still make these models in the middle and low price of about $1000. However, it is doubtful whether the high-end models that are still expensive after the price reduction can attract a larger user base. Samsung said on the second quarter earnings conference call last week that it would focus on expanding sales of foldable smartphones and strengthening marketing to achieve this goal.
Chinese smartphone manufacturers are rapidly increasing their share of the global market. According to the data of canalys, a market tracking agency, Xiaomi ranked second in the world with 17% market share for the first time in the second quarter, second only to 19% of Samsung. Apple’s market share is 14%, followed by oppo and vivo in China, each accounting for 10%.
Compared with the second quarter of 2020, Xiaomi’s mobile phone shipments surged by 83%, while Samsung’s shipments increased by 15% and Apple’s shipments increased by only 1%. The Chinese company aims to become the world’s largest smartphone manufacturer (in terms of annual shipments) by 2023. It offers a variety of models from low-end phones to advanced foldable phones, which are more affordable than competitors.
Chinese mobile phone suppliers such as Xiaomi are expanding their global coverage by increasing stores around the world. Xiaomi has more than 1000 stores in more than 100 countries, and overseas revenue accounts for almost half of the company’s total revenue.
Apple’s competitiveness may continue because it has a loyal fan base seeking its design.
However, some observers said that it was only a matter of time before Samsung’s smartphone lost its advantage. Samsung may need to reconsider its overall mobile phone strategy in the next few years. Samsung said it would streamline the number of models released each year to maximize profitability rather than expand market share.
An industry executive said: “Samsung may have begun to prepare for the next big product after smart phones. The smartphone market will be very different in 10 years. “( Tencent Technology (reviser / Lexue)