Samsung's Market-Flooding Strategy May Not Work Much Longer

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  • Topic: Smartphone, Windows Mobile, Android
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  • Published : December 2, 2012
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Samsung's Market-Flooding Strategy May Not Work Much Longer
Trefis Team, Contributor
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(Photo credit: Wikipedia)
Barely has a week passed since the historic ruling that went againstSamsung in the Apple patent-infringement trial, and its business as usual for the Korean electronics giant. Continuing with its strategy of flooding the market with new gadgets, Samsung recently unveiled a plethora of mobile devices and PCs ranging from smartphones, tablets, & phablets to smart cameras & ultrabooks. The multiple announcements included updates to some of Samsung’s best-selling existing models such as the Galaxy Note as well as new product launches such as Series 5 and Series 7 Windows 8 tablets and a ATIV S Windows Phone 8 smartphone. Samsung’s strategy has played out well … so far

The timing of these announcements probably points to Samsung trying to divert some of the negative attention it has been receiving since the end of the Apple patent trial, but it is also reminiscent of the strategy that has worked so well for Samsung in recent years, at least during the smartphone arena. The past year has seen Samsung gain a lot of share in the smartphone market. Its market share has doubled to more than 36% in Q2 2011 from about 18% during the same period last year. We believe that a major part of the company’s success can be attributed to its much larger portfolio of smartphones that address more market segments than what other popular smartphones such as the iPhone do. While Samsung has had a lot of success in the low-end of the market, it has been gradually increasing its presence in the high-end smartphone market as well. Its huge lead over Apple in the second quarter of 2012, when it sold nearly twice as many smartphones as Apple, was partly driven by the success of the Galaxy S III which sold more than 10 million units in under two months. But Apple’s patent win could cause a strategy shift

However, Apple’s recent patent win in the U.S. threatens...
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