Sunday 9 June 2013

Did Samsung really dilute their product line too much?

   In the last week you will have seen the reports which showed that Samsung has 6% of the value wiped from their shares or the equivalent of $7.7 billion dollars because of fears that the Samsung Galaxy S4 won't sell so well because of their recent announcements of the Galaxy S4 Active and the Galaxy S4 Mini.

   The general idea is that these devices will be cheaper than the Galaxy S4 which will mean lower income numbers and obviously lower profit. I think this has been coming for a while and I'm going to play the name as many Samsung Galaxy phones as you can without thinking for more than 5 seconds in between them game... Here I go:

Galaxy S4, Note, Note 2, S2, OG S, Galaxy Pocket, Galaxy Music, S3, Mega 5.8, Mega 6.3, Galaxy Camera (doesn't really count I know), Galaxy Y, Galaxy Young, Galaxy S2 Plus, S4 Active, S4 Mini, S3 Mini, Galaxy Ace 1, 2 and is there a third one? Galaxy Xcover 1 and 2, Galaxy Nexus, Galaxy S2 Plus and I'm stuck.

   So that right there is Samsung's problem, but it's also part of their success. Samsung's strategy has been to try to cover every part of the market and as such it seems as though there has either been a new phone or tablet from the company each week for as long as I can remember.

   I believe that the reality is that people will still aspire to own the Galaxy S flagship or the Galaxy Note because they're top of the Samsung pile, but obviously Samsung need to cut down the amount of other devices like the S2 Plus and the Mega devices because they just make people confused. Confusion leads to indecision and when other companies get their acts together and offer compelling alternatives then Samsung might have a problem, but for the moment Samsung offer the best phones for the mid and low range market and that's why the alphabet and array of numbers above is working, that might start changing in the future though and Samsung need to be aware of what their competitors are doing.

   The share price shouldn't be too much of a concern because Apple have been having similar issues with their share prices lately, so I don't believe this is too big of a deal and Samsung will carry on as always. Now Samsung where are you hiding that Android 4.2.2 update for the S3?


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