Samsung is reportedly planning a strategic shift in the premium smartphone market. According to South Korea-based E-Today, the tech giant aims to create a new premium brand to rival the iPhone, moving the Galaxy brand toward the mid-range segment.
Shifting Samsung’s Brand Perception
Since 2009, Samsung has used the “Galaxy” brand for all its smartphones, creating a diverse range of models under one umbrella. However, analysts suggest that this may have diluted its premium perception. Despite being a leader in global smartphone shipments, Samsung has faced challenges competing with Apple in the premium sector, making this strategy change potentially impactful.
Inspiration from Hyundai’s Genesis Success
Samsung’s new approach appears to take inspiration from Hyundai’s success with its premium Genesis brand. By positioning Genesis as a high-end offering, Hyundai gained prestige and profitability in the automotive industry. Samsung is likely aiming to achieve a similar elevation within the smartphone market.
Rising iPhone Interest Among Young Consumers
Samsung’s Global Marketing Head, Lee Young-hee, acknowledged during CES 2024 that the Galaxy series’ presence in both mid and high segments may weaken its flagship products’ premium image. Research also highlights growing iPhone interest among younger consumers. Thus, Samsung’s move toward a dedicated premium brand to compete with Apple is not unexpected.
While no official announcement has been made, this new direction could become a major competitive advantage for Samsung.