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A SAMSUNG want to increase the competitiveness of mobile phone against competitors, in order to focus less on reducing the company’s costs, according to reports from the foreign press. With this change, the South Korean giant wants to secure its global leadership in this market. In the first half of 2022, the brand topped the chart which ranks the manufacturers with the largest shipments of devices. Even so, the company fell short of the top spot in terms of revenue, a position it continues to be unbeatably occupied by Apple.
The change of philosophy at Samsung should take place in 2023 and goes against the tide of Chinese giants such as Xiaomi and oppo, who have a current plan to reduce costs in order to maximize profit margins. Apple itself has promoted cuts this year, with a reduction in the pace of hiring due to “economic uncertainties”, according to Tim Cook, CEO of the brand.
What does Samsung’s strategy mean?
The new strategy came to light in an executive meeting with the DX (device experience) division. Reports show that the company intends to avoid development and marketing strategies driven by profitability and cost reduction, in order to focus on “strengthening the functions customers want.” The information was revealed by the Korean portal Hankyung.
According to the website, Samsung Electronics Vice President Han Jong-hee ordered during the meeting that “all departments should think about ways to enhance the competitiveness of smartphones, instead of being constrained by cost reductions.”
How will Samsung do it?
The strategy calls for the company to focus on the development of high-end mobile phones, as these devices are competitive enough to take the top spot over its main rival, Apple. This means that the company has to worry less and less about the market movements made by smaller rivals.
Samsung’s decision to use chips from Qualcomm throughout the series Galaxy S23 it is an important step in executing this strategy. Previously, the company divided the market between smartphones powered by Snapdragon (Qualcomm) and Exynos (Samsung) chips. With the change, the South Korean giant has a breathing space to develop a competitive chipset that can be launched in high-performance smartphones in 2025.
With information from Hankyung and SamMobile
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