If there’s one thing for which Samsung has always been criticized, it’s the price tag of its devices. Usually the price that you pay for a Samsung smartphone can buy you a smartphone from other brands with significantly better specs.
Companies like Xiaomi and OnePlus have become powerhouses that they’re solely by capitalizing on this particular weakness of Samsung. In fact, Xiaomi has become so much of a threat to Samsung’s leadership in Indian market that it sold as many smartphones as Samsung in 3rd quarter of 2017. If Samsung doesn’t change its ways, things may slip out of hands soon.
And now the South Korean giant has also acknowledge this challenge. Sensing the threat to its global leadership from Xiaomi, the company has perhaps decided to launch its own range of online-exclusive smartphones. These words of wisdom have come from a report recently published by The Economic Times.
Citing three unnamed executives who’re in knowledge of the matter, ET’s report suggests that company wants to develop a series of smartphones that’s completely packed with features, yet priced highly aggressively (somewhere in the range of 5,000 to 15,000 INR), just like Xiaomi’s smartphones. To achieve profitability from this new lineup of phones company will sell these new devices via online channels only.
The company has reportedly also started putting its house in order to achieve profitability while selling smartphones online – it has reduced the number of its trading partners responsible for fulfillment of online orders to eradicate the complications of sales management. Distribution layers are also being cut to control the margins better. In short, the company has now completely made its mood to spoil the party of Xiaomi.
In case you don’t know, Xiaomi’s success in Indian smartphone market can be largely attributed to the less competition in online space. The company accounted for more than 50% of smartphones sold online in the country during last year, and the top 3 smartphones sold in India were all from Xiaomi. But now when Samsung has decided to throw its hat in the ring, things may change pretty soon. And it will be interesting to see which way they go.
