There was a time when Samsung ruled the global market and had a strong foothold in both the Indian and China markets – their name still means ‘premium’ to their respective populations. However, the new, homegrown companies are rapidly expanding sales – so much so that Samsung is no longer number one in China…a very coveted market because of the huge growth potential. There have been rumors and reports around for two months about the “Samsung Galaxy A” series and it now seems that Samsung is about ready to descend on China with the Galaxy A3, A5 and A7 in an attempt to regain lost ground.
According to the Korea IT Times, Samsung is expected to release the lower-priced Galaxy A Series in China as early as next month. This in direct competition posed by newcomer, Xiaomi, which has overtaken both Samsung and Apple in China after only being founded in 2010 – Xiaomi sold 19 million smartphones in the third quarter alone this year, and has already become the third largest manufacturer of smartphones in the world. The retail prices of the new Samsung Galaxy A Series are estimated to be around $350 – $500 – still higher than Xiaomi’s Mi4, which is selling for about $320. Samsung is hoping that their ‘premium’ name along with a more competitive pricing will sway buyers to pick Samsung over Xiaomi.
This is also one of the reasons that Samsung launched their Galaxy Note 4 in China before the U.S. and other markets – in hope that it will take sales away from Xiaomi and spread the idea that Samsung is a more premium product. Samsung is also out to take away a little iPhone 6 steam as well – Apple, another premium brand, also lost ground to Xiaomi. Samsung decided to take on the strategy of selling a lower end, but premium looking smartphone in China, hoping that buyers would be willing to pay more for the Samsung name. The Galaxy A Series are similar to the Galaxy Alpha with metal frames with a curved and sculptured design.
Rather than attacking Xiaomi directly, Samsung will go after Apple – who refuses to sell a low-cost device, but rather rely on its ‘premium image’ only. Samsung can show that you can get a premium Samsung product, but at a more competitive price…not to mention the Galaxy Note 4, Galaxy S5 and Galaxy Note Edge. An industry source said, “As far as I know, Samsung reached the conclusion that it has no choice but to greatly increase the supplies of entry-level products with high specs in the Chinese market, even if it means less profitability. Since the Chinese market is the largest market in the world, Samsung apparently thinks that it is the only option to check the influence of Chinese handset makers and Apple.”