Samsung has managed to turn around the mid-range market thanks to the complete renovation of the Galaxy A series. The South Korean company has managed to gain a foothold in an intermediate sector led by Xiaomi based on devices with good value for money. The Asian giant noted that it was losing its presence among mid-range users and has decided to turn around the manufacturing of its devices.
Xiaomi’s situation is now more complicated to continue leading the mid-range market because of the Galaxy A range that has become one of the great assets of today. Also, everything seems to indicate that Samsung will continue along this path. At least they have confirmed this to Reuters with the company’s new strategy to continue manufacturing cheap mobiles.
Some Samsung Galaxy A smartphones could be manufactured by other companies
Samsung seeks to minimize manufacturing costs to try to offer smartphones with lower prices. And that the Galaxy A family continues to grow in the market. To do this, it has done nothing but to use the typical strategy that its competitors already use. Which is outsource other companies. The objective is based on reducing the manufacturing costs of the devices through an ODM company that can build smartphones by a cheaper labor force.
According to Reuters, Samsung is about to sign an agreement with Wingtech, a Chinese company that would be responsible for manufacturing some of its mid-low-end mobile phones. These types of companies work with large technology companies to help in the production of some devices. In this way, costs are reduced and, generally, prices in official stores also fall.
Samsung defines this movement as a “forced strategy”. To be able to compete in an increasingly tight market due to the emergence of Chinese mobiles. From now on, it seems that the South Korean company will try to recover some users. Who had already moved to other brands with better value for money. The Galaxy A range will be the most benefited from this strategy. But it can also be extended to other models. We’ll see if in 2020 more Samsung phones arrive at affordable prices.