Samsung Electronics had made a forecast report on their earnings for July to September quarter. Unlike the forecasts made by analysts, Samsung is actually capable to make a huge success by having a 25% jump in operating profit comparatively to the previous year.

Before the publishing by the financial forecast, many analysts were expecting a slow growing rate on Samsung’s profit, since they assumed Samsung might be affected by other cheap mobile phone makers. However, Samsung did a phenomenal job due to their successful brand positioning.

Not like Apple who provided expensive iPhones only, Samsung sold both high-cost and low-cost smartphones, that strategy allows Samsung to become the leader of the world phone market. In order to compete with Apple’s iPhone in the range of high-costing phones, Samsung introduced Galaxy S4. Otherwise, Samsung did a better job in low-cost smart market. The company recognized the opportunity of growing emerging market as the key of success; hence, they introduced the low-cost smartphones to focus the emerging market in India and China. Samsung would earn huge advantage and tended to get to consumers’ mind easily, since they was the first company who introduced low-cost phones to these countries. The success of phone selling in China and India contributed a lot on Samsung’s financial report for June to September quarter.

References:

“Samsung forecasts record quarterly profit .” BBS NEWS Business (2013): n.pag. BBC. Web. 25 Sep 2013.