Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Samsung, LG pursuing 'self-renewal' in mobile strategy
By Kim Bo-eun
Samsung Electronics' Galaxy Z Fold 2, left, and Z Flip 5G / Courtesy of Samsung Electronics
By Kim Bo-eun
While most smartphone prices have increased quite marginally, there will be a much wider diversity of pricing strategies next year compared to this as Samsung and LG Electronics are focusing on highlighting each of their unique “form factors” in upcoming top-tier handsets.
Smartphones are becoming more expensive because manufacturers are putting more hardware- and software-driven features into their products. But that doesn't necessarily mean such price increases will burden consumers.
That's because the prices hikes could be offset by a growing market for quite affordable flagship mobiles that trade down some fancy specifications to keep their suggested retail price palatable for the average consumer.
Samsung Electronics, the market leader, is apparently hoping to remain with its expensive legacy flagship paradigm, but also wants to enjoy a “first-mover advantage” in the premium phone segment by diversifying its lineup as the company has manufacturing prowess in various areas. For Samsung, its foldable phone models have gradually been improved on and earned great consumer interest.
The Samsung Galaxy Z Fold 2 released in September is assessed to have complemented shortages of the original Fold launched last year. Samsung is looking to expand its portfolio of foldable phones in the coming years and increasing accessibility.
“We'll be expanding our portfolio of foldables, so this groundbreaking category is accessible to everyone," Samsung's mobile chief Roh Tae-moon said in the company's internal newsroom. He said the Z Fold 2 was "just a hint of what's to come as we continue to explore, evolve and expand this category-changing space.”
Analysts say that while markets will also see very expensive flagship mobile devices next year as well, Samsung Electronics' strategy to diversify its lineup could help the market become flush with new affordable flagship devices that provide equally competitive features. Samsung is set to release at least three new phones in this category in 2021.
LG Rollable phone rendering based on filed patents / Captured from Letsgodigital
Samsung's chief local rival LG Electronics is set to highlight its efforts to appeal to “niche customers” by continuously releasing design- and price-focused models in accordance with its business adjustment focusing on expanding the use of original design manufacturers (ODM).
LG plans to promote its rollable phones with hope that it will bring up profits. LG's mobile business has posted losses for 22 consecutive quarters. Given the struggles with its smartphone business, the company appears to be experimenting with form factors to attract more users.
Analysts said LG would pursue “super mid-tier” market. That means LG will try to protect its market share below $900 phones with fifth-generation (5G) networking capability, competitive features and quite stylish design with clearer viewing backed by OLED technology.
ODMs both design and manufacture customers' products. This differs from original equipment manufacturers (OEM) which only produce and are not involved in the design process. ODM has been a cost-saving strategy for LG. Additionally, Samsung and LG are set to focus on large-screen handsets as the COVID-19 pandemic stretches on.
Social distancing has played out well for electronics companies, given the time people have spent at home with digital devices, as video content consumption has grown immensely over the past year.