Samsung Electronics Co. it made the biggest change in its smartphone strategy in years with a reorganization around its Galaxy S and Galaxy Z folding series of devices. The company plans to discontinue its Note line of stylus-equipped phones and instead redistribute that capability into boosting its premium folding devices to compete with Apple Inc..
“In the short term, our operation will focus on a two-way strategy: the iconic S-series in the first half of the year and the innovative folding line in the second,” he said in an interview TM Roh, head of mobile communications business at Samsung. ”We will maintain this strategy until there is another breakthrough and we are working hard to make this happen.”
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The world’s largest smartphone manufacturer presented on Wednesday its latest line Galaxy S22, equipping the Ultra model of the family with a stylus. This effectively recreates the classic Galaxy Note formula and comes months after Samsung chose not to release a new device of that line in August.
Samsung will focus on the premium segment as its growth engine and plans to expand the Note experience into its Galaxy hardware ecosystem, spanning tablets and laptops as well as phones, Roh noted. Folding ones will also grow into new categories, as the company plans to add one or two new smartphones to its lineup within the next three years, he added.
” Under the covid situation, the smartphone industry experienced changes that before could have taken a decade, ” Roh said. “We are entering the second phase of market growth. There is a growing demand for premium high-end models, as consumers use smartphones longer and in more ways than before.”
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The pandemic brought the smartphone market out of its stagnation (growth had stalled and replacement cycles were lengthening), so Samsung now sees that people are more willing to upgrade their phones for better video calling, gaming, and daily communications features as they rely on their Devices to work and play. Initial demand from operators and partners for Galaxy S22 phones increased in double-digit percentages over the previous year thanks to the new Ultra modelaccording to Roh.
Since the appointment of 53-year-old Roh to the position in January 2020, Samsung’s mobile business has had to navigate lockdowns in major cities, plant closures and chronic supply chain disruptions. So far, the company has solved the problems of shortage of components and expects the situation to improve this year, he said.
Samsung will also invest in artificial intelligence and augmented reality technology, and pledged to secure a leadership position in the development of the metaverse in its most recent investor call. Roh refused to provide details on those projects, but said the company is spending aggressively.
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