Even though their latest flagship was received very well by the public, South Korean manufacturer Samsung is still dealing with financial issues, mostly due to the competition from other high-end models.
Besides this, entry-level manufacturers, like Xiaomi or Huawei, for example, are also performing excellent on the market, due to their very well-made devices, available at competitive prices. Therefore, Samsung also needs to deal with very powerful competitors on this market segment too.
Still, despite these two ‘issues’, the manufacturer manages to remain on the first position when it comes to the number of sold units. According to ZDNet, Samsung has put a lot of effort into the low- and mid-range markets, with its line of Tizen-based handsets, currently available for the Indian market, and the surprisingly good Galaxy J line-up, running Android and selling very good.
“Due to introduction of competitive affordable J series of smartphones while S6 series undergoing price correction across many markets helped Samsung see a healthy uptick sequentially,” says a report from Counterpoint Technology Market Research.
The report mentions that models from the Galaxy J series, especially the J1, while the Galaxy S, Galaxy Note and Galaxy A series, considered premium, performed poorly, even though they generated a lot of hype before being launched.
ZDNet also mentions that in Q1 of 2015, 38% of Samsung’s shipments were devices with price tags under $200. Compared to the same period of 2014, when the percentage was around 30, we can clearly spot the raising interest for entry-level and mid-range models.
On the other side, the interest for high-end models dropped significantly. 40% of the shipments consisted in phones costing $301 or more, while last year, the number was 55%.
What are your thoughts on this? Will Samsung keep its position for the next years? Share your thoughts in the comments section below.