Samsung Electronics, the world’s biggest mobile phone and TV maker, forecasts a 25% jump in operating profit form a year ago. Its Galaxy range of smartphones has contributed to the expected $9.4 billion profits. Although some expect its growth rate to be threatened by the emergence of other cheaper mobile phone makers, it has not happened (at least not yet.)

The success of Samsung is due to the fact that they target both high and low income segments of the market, producing the high-quality Galaxy phones and low-cost smartphones targeted at developing countries such as India and China. I think that this is a huge advantage they have over leading competitors, Apple, as the American company only produces the iPhone. Having lived in Beijing all my life, I have seen the low-cost smartphones being used by people in the city and it is clear that Samsung has been successful at targeting those consumers. If Samsung keeps producing quality phones at a low price, it can capture more middle-income segments of the market and dominate phone markets in many developing countries. However, they would need to dig deeper in innovation to compete with the new cheaper iPhone 5C Apple has released.

(200)

Works Cited:

“Samsung Forecasts Record Quarterly Profit.” BBC News. BBC, 10 Apr. 2013. Web. 07 Oct. 2013. <http://www.bbc.co.uk/news/business-24393850>.