Samsung is reportedly looking at a big change in its branding strategy to compete better with Apple’s iPhone in the premium smartphone market, according to South Korean outlet E-Today. Insiders from the industry suggest that the tech giant is thinking about launching a new high-end brand to improve its image and draw in wealthier customers.
Samsung's Brand Image on the Rise
Samsung Galaxy S24 Ultra
Since 2009, the company has used the 'Galaxy' name for all its smartphones, covering everything from affordable models to its top devices. However, this wide-ranging strategy might have weakened the premium feel of its best products. Even though Samsung leads the world in smartphone shipments, it has had trouble keeping its ground in the profitable premium segment where Apple's iPhone dominates.
The concept of a new brand comes from the success Hyundai had with Genesis, its luxury car line. Started in 2015, Genesis quickly became a top premium brand, greatly enhancing Hyundai's market standing and profits. Samsung wishes to mirror this achievement within the smartphone sector.
Insights from CES 2024
At CES 2024 in Las Vegas, Lee Young-hee, Samsung’s Global Marketing Head, hinted at this possible rebranding. She mentioned that the wide Galaxy range, which includes everything from foldable devices to mid-range options, could confuse buyers and lessen the premium appeal of its flagship offerings.
Recent polls show a rising inclination for iPhones among younger consumers. For example, a study conducted by Piper Sandler found that 90 percent of American teens own iPhones. In Korea, a Gallup survey indicated that 64% of individuals aged 18-29 favor iPhones, with the percentage rising to 75% among young women. These figures reveal the hurdles Samsung must overcome to attract the next generation of smartphone users.
Internal Studies Underway
To tackle this issue, Samsung is performing internal research to assess the possibility of launching a new brand. This effort includes looking into potential effects on the market, marketing expenses, and long-term advantages. As the company ponders this strategic direction, industry experts think that introducing a separate premium brand could aid Samsung in regaining its competitive advantage and securing a more robust position in the high-end smartphone market.
