To compete with iPhone, Samsung might drop the "Galaxy" brand from some of its devices
A report out of South Korea from E-Today says that Samsung is considering the use of a new branding scheme for its Android phones that would be used in addition to the current "Samsung Galaxy" name. If such an initiative is put into place, premium smartphones could be sold by Samsung without the use of the Galaxy moniker which debuted in 2009 on the manufacturer's first Android phone, the Samsung Galaxy I7500.
Samsung said that it could develop a new brand name as a way to separate the company's "innovative turning point[s]." This goes back to a comment made earlier this year by the company's president and head of global marketing Lee Young-hee who said that customers are expecting a new name whenever there is an "innovative turning point.
By coming up with a new brand name for Samsung's premium phones, the manufacturer might be giving Samsung customers what they want by identifying these premium handsets as devices with premium features, specs, and yes-even pricing that would be distinct from Galaxy phones. The report compared this to the naming strategy used by Hyundai which is using the name Genisis for its premium vehicles.
The Samsung Galaxy I7500 from 2009 was the first Galaxy phone from Samsung. | Image credit-Retromode
Samsung uses the Galaxy name on a wide range of handsets ranging from its Galaxy M budget brand to the Galaxy A low-to-mid-range brand, and its Galaxy S high-end brand. There is also the Galaxy Z line of foldables and the Galaxy F brand of low-to-mid-range handsets sold only in India, China, and Bangladesh.
Since a Samsung Galaxy phone can be a low-end to a high-end flagship device, this branding makes it difficult for Samsung to compete against the Apple iPhone according to the E-Today report. While the report would have you believe that every iPhone is considered a premium device, this writer would point out that Apple separates its phones by using the Pro and non-Pro branding.
While Samsung typically leads all smartphone manufacturers in the number of units shipped each year, sales are declining and in the premium sector, Apple has the lead. This results in greater profitability for Apple. Samsung hopes that by offering a new premium brand, it can attract those seeking the best phones that the company makes. Owning a premium phone is quite a status symbol for a demographic you wouldn't expect to have the money to buy them-American teenagers.
Earlier this month, investment bank Piper Sandler released a report showing that nine out of 10 American teenagers owned an iPhone. Samsung believes that by differentiating its premium phones, it can take away the iPhone's strength in this demographic.
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