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Samsung reorganization includes Galaxy M inception in a bid to catch up with Chinese brands

Samsung is reorganizing its mid- and low-end smartphone product lines to make that category more profitable to the company.

Jullie Anne Mendoza

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Samsung is planning a reorganization in a bid to catch up with Chinese brands

Samsung revenue saw a decline in the second quarter 2018, mainly due to the lower than projected sales of the Galaxy S9 flagship smartphone. The nosedive in the South Korean company’s revenue is also attributed to the inception of Chinese brands in the mid-range and high-end categories. There are strong evidences that the mobile division of Samsung Electronics is considering to revamp its entry-level and mid-range smartphone brands in an attempt to position itself for more profitable company.

The strategical plan of Samsung carries the indication that the tech company will no longer aim to sell more units of devices but to earn more revenues. Samsung will reportedly discontinue the lower-mid-range devices such as Galaxy J series, instead, the company will focus more on the more premium mid-range Galaxy A series.

The change in marketing strategy is also Samsung’s effort to reduce the impacts of emerging Chinese manufacturer’s smartphones on the South Korean’s sales gap, most especially in Chinese market.

The competing Chinese brands’ smartphones offers way better specs and features than what Samsung sells on its lower-mid-range area and at fairly cheaper price tags. So, the lower-mid-range category hasn’t been a quite profitable segment for Samsung.

In addition, another report claims that Samsung is also contemplating to change the suffix name of its online-only Galaxy On series to Galaxy M. If the report is to be believed, Samsung Mobile’s lineup will now consist of the Galaxy M, the Galaxy A and the more premium flagships — the Galaxy S and Note smartphones.

The creation of the new M series will directly compete against the low-priced Chinese phones. The M series is claimed to have an affordable price with a way better specs by incorporating a cheaper yet advanced technology of Chinese components. It is a plan to compete with China’s brands, who are targeting the emerging markets such as India, Latin America and Southeast Asia with low-cost smartphones.

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