Samsung selling more phones at lower prices
With lower priced mobile phones, Samsung is able to sell more.
Samsung reported last week an increase in their smartphone shipments and sales. But according to Counterpoint Technology Market Research's data cited by CNET, Samsung's more expensive phones are less bought. Phones priced under $200 are snagging a greater portion of shipments.
Samsung is now facing competition with Chinese vendors like Huawei and Xiaomi. Making consumers have more choices when it comes to smartphones.
Samsung's more pricey phones had 40 percent of its overall smartphone sales in the third quarter, Counterpoint said which decresed as last year, there was 55 percent in sales. Smartphones that are $200 or lower had 38 percent sales as compared to last year there was only 30 percent.
Tom Kang, an analyst at Counterpoint, said that Samsung's decision to push lower-priced products may not be a boon for long. "Chinese brands are already hitting very hard in this price segment in online channels,"
"It remains to be seen if Samsung can continue volume momentum in next few quarters to translate these shipments into sales consistently in this highly price-competitive segment."
Samsung focused on entry-level and mid-range models. Galaxy J1, Galaxy J5 or it's Tizen-based handsets sold incredibly well. These models were able to sell more compared to other Samsung smartphones that are pricier.
In September, Samsung Galaxy J5 was Samsung's betseller and through it the South-Korean based company was able to regain its market and sales in some countries like India.
Samsung is still the world's leading smartphone vendor in market share and sales but its rivals are tough. Maybe by the end of the year we can see if Samsung can still hold on to its position.