Samsung Changes Strategy to Attract Younger Customers

Is it possible for there to be a clear winner when it comes to who has the best smartphone?  While I could sit here and outline which company I think is better, it all comes down to preference.  As someone in my 30s, there are certain things that I look for in a device. Further to that, as someone who has a strong interest in and understanding of technology, that also plays a part in my decision. Which is why I was enticed when I heard that Samsung has a plan to get more millennials interested in their smartphones.  Before I go too much further, I’d like to announce that I am a millennial.  So will this persuade me to switch?

DJ Koh, the CEO of Samsung’s mobile business has indicated that the crux of his strategy is to bring new cutting-edge technology to company’s cheaper phone models, like those in the Galaxy A series.  Their plans afterward is to bring it to the pricier models.  But is this the answer? And is it sustainable?

Koh states:

“In the past, I brought the new technology and differentiation to the flagship model and then moved to the mid-end. But I have changed my strategy from this year to bring technology and differentiation points starting from the mid-end … So we are very much focusing on millennials who cannot afford the flagship. But how can I deliver meaningful innovation to our millennials? That’s the reason I’m trying to differentiate the mid-section.”

When I asked the question as to whether or not this was the answer, I meant in terms of attracting more millennials.  I mean, all you’re doing is offering a cheaper phone, but is that what millennials want?  As I noted earlier, I am a millennial.  Albeit, at the top end of the spectrum, but this isn’t something that I am interested in.  I am also in my 30s and am looking for very specific things in my smartphone.  While a cheaper price is certainly something that I look for, it’s not the only thing I consider when purchasing a phone.

You’re probably well aware that there’s a bit of a downturn in smartphone sales, which seems to be hurting Samsung more than others, so again, I ask – is this the best strategy?  Huawei is doing well.  In fact, they are outpacing Apple, and their goal is to dethrone Samsung.  So maybe cheaper phones is what people are after.

Don’t get me wrong.  I am not a fan of Apple’s (and now Samsung’s) $1,000 price tag for a smartphone. It’s exorbitant, and when you put it into perspective, its kind of ridiculous.  But that’s the way of the world.  We now live in a time where a phone costs more than a monthly car payment or even mortgage depending on where you live.  Maybe this strategy will help bring down the cost of phones in general – and that’s something I can definitely support.  The goal is to target more budget-minded, younger buyers who maybe can’t afford the flagship phones.  But that won’t stop Samsung from bringing their latest and greatest to the masses at the $1,000 price.