Competitiveness over profits: Samsung's new strategy for 2023

It is not very often that big tech companies try to change, for the better. Especially if that means slimmer profit margins. Nevertheless, it seems like Samsung will try to do exactly that in 2023.

The Korean tech giant will adopt a new strategy that essentially aims to boost the competitiveness of its smartphones - even at the expense of profitability. In fact, Samsung will ostensibly be dropping its cost-reduction mindset altogether.

This information was first brought forward in a dedicated report by Hankyung, which was subsequently covered in an article by Android Authority. According to the source, this strategy was first announced by Han Jong-hee, the Vice Chairman of Samsung Electronics, in a senior management meeting.

The main emphasis will be on the company’s most premium smartphone lineups - i.e. the Galaxy Z Fold, Galaxy Z Flip and Galaxy S series. One of the main reasons for the new strategy is Apple’s unchallenged supremacy in the premium and the ultra-premium segments of the smartphone market. The Cupertino company holds massive market shares in both, with Samsung lagging behind in almost all key markets.

As a result, the Korean tech giant is now changing gears in order to boost the competitiveness of its flagship devices. The shift will begin to take place as soon as early next year, when we expect to see the launch of the Galaxy S23 series, which has completely abandoned Exynos in favor of the Snapdragon 8 Gen 2 SoC.

It will be more interesting, however, to see how the Galaxy Z Flip 5 and the Galaxy Z Fold 5 will benefit from the new strategy. Samsung predicts that by 2025, foldables will make up the bulk of the company’s premium sales. Making them as competitive as possible will take more than a couple of speedy processors.