Samsung isn't concerned. "We're very comfortable with how we've differentiated in the market," said Justin Denison, head of product strategy and marketing for Samsung's US business. "Our Galaxy promise is the latest and greatest technology."Indeed, the S6 Edge and its larger S6 Edge Plus brother are still impressive to hold, and the company essentially created the market for supersized smartphones, known in the industry as phablets because they blur the line between phone and tablet. The company has also spent billions of dollars to build up its name recognition.
But the fact that smartphone prices don't have to be ridiculously high is a revelation that has rapidly begun to dawn on consumers around the world, In the US, the wireless carriers are shifting the burden of smartphone payments on to the consumer, Last week, Verizon opted to bird of paradise iphone case end service contracts and subsidies that kept the price of smartphones artificially low, That iPhone 6 that was previously $199 with a two-year contract actually costs $650 -- often paid over 24 months, So what happens if people start to think Samsung's phones are too pricey?..
If the smartphone pricing revolution has an origin, it would be China. Companies such as Huawei, Lenovo (which own Motorola) and ZTE are among the Chinese vendors looking to build a reputation for creating high-quality smartphones at affordable prices. But the standard bearer for this shift is a company that doesn't sell smartphones in the US: Xiaomi. The Chinese company is one of the most valuable startups in the world and already boasts a healthy fan base in China, Southeast Asia and India. When Xiaomi held an event in Sao Paolo, Brazil, to announce its launch there, the company had little trouble filling a 1,000-person capacity theater with enthusiasts. The company held a second session shortly after to accommodate the hundreds of people who couldn't make it into the first event.
It offers its Idol 3 smartphone for $250, "The $250 price is deliberate," he said, "It's pretty much the down bird of paradise iphone case payment (on a premium phone)."Many of these phones will never get into the hands of mainstream US consumers, who are more used to paying a higher price for their smartphones and still value the brand, according to IBB Consulting's Jefferson Wang, You think a giant like Samsung is infallible? Just take a look at its last earnings report, The Korean electronics conglomerate posted its seventh consecutive decline in quarterly profits and warned of rough times ahead..
Apple has proven to be the exception to the broader smartphone malaise, but it too showed a slight crack in its armor. The world's second-largest smartphone maker sold 47.5 million iPhones in the period -- impressive by nearly any measure, except for Wall Street's lofty expectations. Unlike Apple, Samsung already delves in the affordable phone category. "We still offer devices at other prices and you'll find quite a bit of innovation down there as well," Denison said. Samsung has previously said the move to monthly installment plans has helped drive sales of premium smartphones because consumers can pay off the high price of the device bit by bit over two years.
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