As reported in the South Korean publication E-Today, Samsung is considering a major shift in its branding strategy to better compete with Apple’s iPhone. To enhance its image and attract affluent customers, the tech giant is considering launching a new high-end brand.
From budget-friendly models to flagship devices, Samsung has used the Galaxy brand since 2009. Its top-tier offerings, however, may not have maintained their premium perception because of this broad approach. While Samsung leads in global smartphone shipments, it struggles in the lucrative premium segment, where Apple’s iPhone dominates.
Hyundai’s Genesis, its luxury vehicle line, inspired the idea of a new brand. After the Genesis brand launched in 2015, Hyundai’s market reputation and profitability significantly improved. This success will hopefully be replicated by Samsung in the smartphone market.
Lee Young-hee, Samsung’s Global Marketing Head, hinted at this potential rebranding at CES 2024. In addition to foldable phones and midrange devices, the Galaxy lineup might confuse consumers and lessen the premium allure of its flagship products.
The Gallup survey revealed that 64% of Koreans aged 18-29 prefer iPhones, with the figure climbing to 75% among young women. Samsung faces a challenge in appealing to the next generation of smartphone users based on these statistics.
Samsung is conducting internal studies to determine the feasibility of launching a new brand. As part of this initiative, we are analyzing the potential market impacts, marketing costs, and long-term benefits of the project. Experts believe Samsung can regain its competitive edge by introducing a distinct premium brand as part of this strategic move.
